Minnesota Resident Got Ripped Off $9M In a Crypto Romance Scam

Minnesota police reported that the victim made 21 transactions to a LinkedIn seductress in hopes of big returns, losing $9million in total. 

Biggest Crypto Scam Recorded in Minnesota

According to the report, a resident of Eden Prairie, MN, routinely invested large sums of money into a crypto scam project called “Coinrule-web3” during the period of six months, from December 21 to June 8, 2023. Apparently, the person who promised quick profits was a woman the man connected on LinkedIn. The adulteress has also asked him to abandon his wife and run away with his LinkedIn partner.

As it was revealed, the victim initially topped sums of $100,000 at a time, keeping it all in secret from his wife. Seeing growing profits of his investments on a fake website, the man continued making deposits to the scammer’s bank account. However, when he wanted to withdraw his money, the woman from LinkedIn told him there was a $2.8 million fee for collecting the returns.

The man called his wife “in a panic” and asked her to withdraw all their remaining assets in order to pay the fee. The wife then learned that her husband had been draining their investment accounts for the sake of a crypto scam over the past six months. On the next day, June 15, she called the police and reported the incident. 

Police quickly found out that the “Coinrule-web3” name is associated with numerous "cryptocurrency and romance scams." The total sum of money lost in this particular case make it the largest crypto scam seen in the whole state so far: 

"No one in the office has heard of a crypto fraud case as big," John Stiles, spokesman for Minnesota Attorney General Keith Ellison, commented on the case. "In fact, their eyes popped when I told them the amount."

Police officials have declined to share more details about the victim or the progress of the investigation.

Social Media Crypto Scams Rise in the US

The FBI has previously reported other crypto fraud cases similar to the one in Minnesota. 

According to an FBI statement of March, the scheme usually begins "when fraudsters contact victims on social media or dating application sites, portraying some sort of 'innocent' connection when in all actuality it's a heavily scripted, calculated first move of many to build rapport and gain trust.

Eventually, these conversations lead to discussions of investment opportunities, wherein victims are lured into investing cryptocurrency funds using fake website/apps that allow them to track their investment progress. The deception becomes apparent when victims attempt to cash out their investments, or when communication with the fraudster is terminated."

These reports could be proof of rising crypto scam activity related to social media in the US. To avoid becoming a victim of fraud, the FBI offers cautionary measures: 

• pay close attention to website domain names; 
• avoid using suspicious looking apps for investment; 
• research a digital currency before buying it.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.