• Residents of Colorado have been targeted by crypto criminals, resulting in millions of dollars stolen from traders and everyday people.
• The FBI reported that the scams involve stable assets like Tether and USD Coin (USDC).
• Five recent examples were detailed in which victims lost more than $4 million to crypto scams.

Crypto Criminals Targeting Colorado Residents

Residents of Colorado have become major targets for crypto criminals according to a new report issued by the Federal Bureau of Investigation (FBI). Millions of dollars have been stolen from traders and normal, everyday residents in the Centennial State. Many of the scams involve stable assets such as Tether and USD Coin (USDC).

How These Scams Work

The FBI reports that victims are approached on social media, dating apps or discussion forums with a cryptocurrency investment opportunity. Victims are directed to a link or phone number to set up an investment account, however this is controlled by fraudsters who set up fictitious support sites. Once funds are transferred, the fraudster disappears with the money.

Recent Examples From Colorado

The FBI has detailed as many as five recent examples of Colorado residents being targeted. Altogether, they lost more than $4 million to crypto scams involving Tether. This included over $600K from a 52-year-old man living in Aurora; about $1.3 million from a 61-year-old woman in Denver; $350K from a 62-year-old man in Evergreen; and $1.2 million from a pair in their late 40s in Parker.

Typical Scam Tactics

In most cases, scammers come forward posing as investment managers offering brand new investment opportunities that can’t be missed out on. Victims are then directed to phony websites under the control of scammers or hackers where profits appear rising and portfolios look promising at first glance. After investing some money initially, victims find they cannot make withdrawals unless further investments are made – after which point all funds disappear for good.

Advice From The FBI

The FBI has warned those looking to invest in cryptocurrencies to take caution and only use legitimate services when making transactions: “The advice and offers to help you invest in cryptocurrency are nothing but scams” said an official statement “If you send them crypto, or money of any kind – it’ll be gone, and you typically won’t get it back“.