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Ohio Siblings Scammed Out of $1M in Crypto Scheme
CLEVELAND – A Trumbull County man and his sister are reeling after falling victim to a sophisticated cryptocurrency investment scam that drained over $1 million of their life savings. Federal prosecutors have filed a civil complaint seeking forfeiture of $325,060 in Tether (USDT) cryptocurrency, believed to be fraudulently obtained funds.
The scheme began around Nov. 24, 2024, when the elderly male victim, of Bristolville, Ohio, received a seemingly innocuous text message intended for someone named “Zach.” Responding to the message, the victim quickly engaged with a scammer operating under the Telegram username “Shaw Goddess,” who presented herself as a savvy investor. The scammer expertly built trust, luring the victim into the world of cryptocurrency investments.
Directed by “Shaw Goddess,” the victim opened accounts with both Crypto.com and Strike.com, virtual currency exchanges. When Crypto.com imposed purchase limits, the scammer instructed him to utilize Strike.com to bypass restrictions, ultimately wiring over $1 million of his own money. The victim wasn’t acting alone; he convinced his sister to invest over $600,000 of her savings into the same fraudulent scheme. Both victims were then directed to transfer their newly acquired cryptocurrency to a bogus investment platform.
Red flags emerged when the male victim attempted to withdraw funds from the fake platform, only to be told his money was “locked” and inaccessible. Simultaneously, his sister discovered a demand for a 10% upfront “tax” to access her funds – a clear inconsistency with standard taxation practices. It was at this point both realized they had been targeted by a calculated fraud.
Federal investigators, leveraging the transparency of blockchain technology, traced approximately $200,000 of the stolen funds to a cryptocurrency address on the Tron blockchain, where it was converted into USDT. Tether Limited, Inc. froze 325,060 USDT (valued at approximately $325,060 at a 1:1 ratio to the dollar) at that address on Dec. 31, 2024. A federal seizure warrant, issued on March 20, 2025, facilitated the transfer of the frozen USDT to a U.S. law enforcement-controlled wallet.
On Aug. 27, 2025, the United States Attorney’s Office for the Northern District of Ohio filed a civil complaint seeking forfeiture of the 325,060 USDT. The government alleges this cryptocurrency represents proceeds obtained through the fraudulent scheme and seeks to recover the funds for the victims. The investigation remains ongoing, with authorities continuing to trace the remaining stolen funds and identify those responsible for the scam.
Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Cybercrime
- Source: Official Source ↗
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