DOJ Seeks to Recover $200K in Tinder Crypto Fraud

Core Viewpoint - The Justice Department is pursuing a civil forfeiture action to recover approximately $200,000 in cryptocurrency linked to a fraudulent investment scheme that exploited a dating app to lure victims [1][2]. Group 1: Fraud Scheme Details - The fraudulent operation is identified as a "pig butchering" scheme, where scammers build trust with victims through online interactions before convincing them to invest in a fraudulent cryptocurrency venture [2]. - The victim, who met the fraudster on Tinder, was led to believe that the individual, posing as "Nino Martin," was a financial advisor capable of generating profits through cryptocurrency investments [2][3]. - Over several weeks, the victim transferred approximately $384,413 to unhosted wallets, believing they were investing in a legitimate platform [4]. Group 2: Victim's Experience - The victim revealed their bank account balance of about $500,000 to the fraudster, which may have influenced the amount they were persuaded to invest [3]. - The investment platform changed its name during the scheme, and the victim faced restrictions on their Coinbase account due to suspicious transfers [4]. - The victim sent an additional $112,253 after being misled by individuals posing as customer service agents, who claimed the victim owed taxes to the IRS [5]. Group 3: Financial Impact - In total, the victim estimated that they transferred around $504,353, which represented a significant portion of their savings [6]. - The cryptocurrency account associated with the fraudulent scheme was seized by authorities in June [6]. Group 4: Legal Proceedings - The DOJ's civil forfeiture action allows for the seizure of property or earnings suspected of being linked to criminal activity, even without criminal charges against the owner [7]. - The owner of the seized property can assert claims, which must be resolved before the DOJ can reclaim the funds and potentially return them to the victims [7].