FBI Warns of Escalating Cryptocurrency Scams in Baltimore

Baltimore’s FBI field office has issued a serious warning regarding a rising cryptocurrency scam that is draining victims’ savings and affecting the financial well-being of many individuals. This alarming trend poses a significant danger to unsuspecting residents, leading some to lose their entire life savings in the deceitful web spun by scammers.

Millions at Risk: The Victim’s Heartbreaking Account

A woman from Maryland shared her harrowing experience of losing millions of dollars in this complex scam. Her story has drawn attention to the deceptive methods used by criminals in the cryptocurrency space. She reached out to WJZ Investigator Mike Hellgren, expressing her embarrassment about her involvement, yet feeling compelled to share her ordeal to help others steer clear of similar traps.

“I put in over $3 million into this investment, and at one point, it appeared that I was making a profit of nearly 80%,” the victim revealed. Her voice was disguised during the interview, and she requested anonymity to protect her identity.

“I never thought I’d find myself in such a bizarre situation. The humiliation was overwhelming, and it was exceptionally difficult for me,” she explained. “You trust someone, and then you end up feeling betrayed. The emotional pain is far more intense than just the financial loss,” she added.

The victim recounted how the scam began: a female scammer contacted her through a Korean messaging app, gradually building trust over several weeks. This carefully orchestrated trust led to requests for money to be invested in cryptocurrency on her behalf.

Visual Evidence of Deceit

To validate her claims, the victim shared various screenshots with WJZ Investigates, displaying her interactions with the scammer. These interactions highlight the misleading nature of the scam, which often mimics legitimate investment platforms.

The victim asserted that the investment portfolio she was shown closely resembled genuine investment opportunities. Initially directed to the authentic Coinbase website, she was later manipulated into fraudulent sites. “As she gained more of my trust, I ended up investing more and more funds,” she disclosed. “If someone doesn’t have prior knowledge of cryptocurrency investments, it’s incredibly challenging to differentiate between real and fake platforms.”

According to the FBI, it is a common tactic for scammers to allow victims to withdraw a small amount of their investment initially, thereby fostering a sense of trust, only to later abscond with the entire sum. “This has turned out to be the biggest mistake of my life,” the victim said regretfully.

“I recognized a couple of warning signs but chose to ignore them because I kept convincing myself that I had to trust this individual,” she acknowledged. “By the time I realized the full extent of the situation, I was desperate for the investment to succeed due to the substantial amount I had already put in.”

FBI’s Response to the Growing Crisis

Agent Sarah Lewis from Baltimore’s FBI office became aware of this victim’s case through Operation Level Up, which aims to dismantle such cryptocurrency scams. 

“These fraudsters often prepare their victims in case law enforcement involves them by instructing them on what to say,” Lewis explained. During her initial conversation with the victim, Lewis noted that the victim insisted she was not being scammed and used language that clearly came from the scammer.

Many victims find it hard to trust authorities, frequently rejecting help when contacted. “I always advise them to conduct their own research and strongly caution them against sending any additional funds to these fraudsters,” Lewis said in an interview.

This brutal scam has garnered the nickname “pig butchering,” due to the methodical way fraudsters exploit victims. The targets are often middle-aged or older, though not exclusively. “They identify the victims through a series of tactics, increase their deposits into a fraudulent account, and then ultimately vanish with the money,” explained special agent Lewis.

Her colleague, special agent Jeremy Capello, highlighted the alarming trend of victims being targeted repeatedly. “Many individuals can lose hundreds of thousands of dollars to the same scam and then face follow-up contact from these criminals posing as recovery companies, claiming to regain their cryptocurrency for a fee,” Capello stated.

“The elaborate websites they create can be indistinguishable from legitimate platforms,” he added, emphasizing the urgency for victims to report their experiences quickly to authorities in hopes of recovering lost funds. “Once the money is out of their control, it is typically gone for good,” Capello warned.

The Emotional Toll: Devastating Consequences

In a tragic case from Maryland, an elderly man lost his life savings through a scam on Facebook and tragically took his own life as a result. In contrast, the Maryland victim who lost millions expressed gratitude for her strong family support network.

“At the end of the day, it’s just money. Despite how humiliating and painful this has been, it’s crucial to remember that it isn’t worth sacrificing your life over,” she emphasized, urging others to recognize the broader implications of such scams.

Guidance for Potential Victims

The FBI has identified this fraud as a vicious cycle, revealing that some of the scammers themselves are victims of human trafficking, coerced to make these connections while trapped in exploitative conditions in Southeast Asia. As a precautionary measure, the FBI strongly advises against engaging with unsolicited messages and encourages everyone to refrain from investing with unknown individuals or organizations.

Many scammers prefer not to communicate over traditional phone lines, directing victims to encrypted messaging apps like WhatsApp, heightening the red flags for potential victims.

National Statistics as of January 2025:

• The FBI has identified 4,323 victims of cryptocurrency investment fraud.
• A staggering 76% of these victims were unaware of the ongoing scam.
• The estimated aggregate loss for victims stands at $285,639,989.
• 42 victims have been referred to specialists for suicide intervention.

If you suspect that you might be a victim of the pig butchering cryptocurrency scam, it is imperative to act swiftly. Report your situation to the Internet Crime Complaint Center at ic3.gov to aid in combating this growing threat.

AI legalese decoder: A Supportive Resource

For those facing legal challenges or uncertainties related to cryptocurrency scams, leveraging technology like AI legalese decoder can be instrumental. This innovative platform can help translate complex legal jargon into understandable language, making it easier for victims to comprehend their rights and the legal obligations involved. By facilitating a clearer understanding of the potential avenues for recovery and legal recourse, AI legalese decoder can empower victims as they navigate the daunting aftermath of being scammed, providing crucial insights that may assist them in communicating more effectively with legal professionals.

Mike Hellgren

WJZ Investigator Mike Hellgren has been a trusted news professional since joining WJZ in 2004. Known for his thorough reporting and breaking crucial news stories, Mike holds a B.S. degree in journalism from Northwestern University and has roots in both Chicago and Louisiana.