Unknown Subjects, Cryptocurrency Investment Fraud, Massachusetts 2026

At least four individuals, including two Massachusetts residents, a resident of Utah and a resident of South Carolina, were targeted by an online investment fraud scheme that netted scammers a staggering $3.4 million in cryptocurrency. The scheme, which was investigated by the U.S. Attorney’s Office, involved unknown subjects who used manipulative tactics to obtain funds from victims using encrypted messaging applications such as WhatsApp and Telegram.

According to court documents, the unknown subjects initially communicated with the victims through what appeared to be misdirected messages via texts or through encrypted messaging applications. After cultivating a relationship, the unknown subjects convinced the victims to invest in an exclusive Ethereum (ETH) investment opportunity that the unknown subjects claimed was backed by physical gold.

The victims were directed to purchase ETH and transfer the cryptocurrency to intermediary wallets controlled by the unknown subjects. However, the victims believed they were investing in a legitimate platform, when in fact the unknown subjects were instead sending victim funds to intermediary wallets, converting victim funds from ETH into USDT, transferring that USDT to unhosted wallets and stealing the funds.

The government seized 3,444,470 USDT involved in this scheme in February and March of 2025. The cryptocurrency currently has an estimated value of approximately $3,444,470.

U.S. Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Valuable assistance was provided by the Woburn Police Department and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit is prosecuting the civil forfeiture action.

This is one of several civil forfeiture actions the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency involved in fraud schemes targeting Massachusetts victims. Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams and business email compromise fraud scams – should contact USAMA.CyberTip@usdoj.gov.

The details contained in the civil forfeiture complaint are allegations only.

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