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Cryptocurrency Romance Scam Case Study

Our role was to provide fact-based, litigation-ready intelligence to support the victim’s attorney and assist law enforcement with actionable investigative leads.


⸻


Initial Incident Summary


The victim was approached through a social media platform and later transitioned to encrypted messaging applications. Over a period of several weeks:


A relationship of trust was established (classic “pig-butchering” scam methodology)

The suspect introduced a “cryptocurrency investment opportunity”

The victim was guided through purchasing cryptocurrency via Coinbase

Funds were transferred to a wallet address provided by the suspect

A fraudulent investment platform interface displayed fabricated gains

Additional deposits were encouraged under urgency and false profit narratives


Ultimately, when the victim attempted to withdraw funds, access was denied and communication ceased.


⸻


Scope of Investigation


Garrett Investigations LLC conducted a comprehensive cryptocurrency tracing and OSINT-supported investigation, including:


Blockchain transaction tracing (Ethereum network)

Wallet attribution and clustering analysis

Identification of intermediary and aggregation wallets

Detection of laundering patterns and behavioral indicators

OSINT and infrastructure analysis of associated platforms

Identification of centralized exchanges (CEXs) for potential subpoena


⸻


Blockchain Forensic Findings


1. Victim On-Ramp and Initial Transfers


The victim purchased cryptocurrency through Coinbase, a regulated U.S.-based exchange, establishing a clear fiat-to-crypto entry point.


Funds were transferred from the victim’s Coinbase-associated wallet to an externally controlled wallet address provided by the suspect.


Key Observation:

The initial receiving wallet demonstrated characteristics consistent with a controlled deposit address, commonly used in fraudulent investment platforms.


⸻


2. Rapid Forwarding & Controlled Relay Wallets


Upon receipt, funds were rapidly forwarded within minutes through multiple intermediary wallets.


This behavior is indicative of:

Pass-through laundering

Attempted disruption of traceability

Avoidance of wallet-level attribution


Investigative Conclusion:

The speed and structure of these transfers are inconsistent with legitimate investment behavior and align with known cryptocurrency fraud typologies.


⸻


3. Aggregation of Multi-Victim Funds


Tracing revealed that victim funds were combined with other incoming transactions into a centralized aggregation wallet.


Indicators Identified:

Multiple inbound transactions from unrelated wallets

Similar transaction sizes and timing patterns

Structured consolidation behavior


This supports the presence of a multi-victim fraud operation, rather than an isolated incident.


⸻


4. Layering Through DeFi Protocols


Funds were routed through decentralized finance (DeFi) infrastructure, including the Tokenlon Protocol.


At this stage:

Assets were converted (e.g., ETH → WETH)

Transaction paths became more complex

Obfuscation techniques were introduced


Purpose of This Step:

Break deterministic transaction trails

Introduce additional transactional noise

Complicate forensic tracing for inexperienced investigators


⸻


5. Structured Fan-Out & Exit Routing


Following DeFi interaction, funds were dispersed through a structured fan-out pattern, splitting into multiple wallets.


Subsequent tracing identified movement toward centralized service endpoints, including:

HTX (identified as a potential off-ramp exchange)


Significance


Centralized exchanges represent critical investigative leverage points because:

They maintain KYC (Know Your Customer) records

Accounts can be identified via legal process

Funds may still be traceable or recoverable in limited scenarios


⸻


Behavioral Indicators of Fraud


This case demonstrated multiple high-confidence fraud indicators, including:

Romance-based social engineering (emotional manipulation)

Introduction of “exclusive” crypto investment opportunities

Use of fraudulent trading platforms displaying simulated balances

Urgency tactics to encourage additional deposits

Immediate fund movement after receipt (non-investment behavior)

Multi-wallet laundering structure consistent with organized fraud rings


⸻


OSINT & Infrastructure Intelligence


Garrett Investigations conducted parallel open-source intelligence (OSINT) analysis to support blockchain findings.


Key observations included:

The investment platform domain showed characteristics consistent with fraudulent infrastructure

No verifiable corporate registration or regulatory licensing

Similar platform designs observed across known scam clusters

Communication methods included anonymized email accounts and encrypted messaging


Assessment:

The digital infrastructure aligned with known cryptocurrency fraud ecosystems, often operated by organized groups leveraging repeatable templates.


⸻


Investigative Outcome & Intelligence Value


Garrett Investigations LLC produced a litigation-ready blockchain forensic report including:

Full transaction tracing with timestamps and wallet addresses

Flow-of-funds analysis demonstrating laundering pathways

Identification of subpoena-relevant centralized exchanges, including Coinbase and HTX

Behavioral analysis consistent with romance and investment fraud schemes

OSINT-supported attribution insights


⸻


Law Enforcement & Legal Utility


The findings from this investigation were structured to support:

Law enforcement referrals

Civil litigation proceedings

Subpoena preparation for exchanges and service providers

Asset tracing and potential recovery strategies


Important Clarification:

Garrett Investigations LLC does not act as a cryptocurrency recovery service. Instead, we provide verifiable intelligence and forensic documentation to support legal and investigative processes.


⸻


Key Takeaways for Victims and Attorneys

Cryptocurrency transactions are traceable, even when fraudsters attempt obfuscation

Romance scams frequently evolve into investment scams involving digital assets

Early investigative intervention increases the likelihood of identifying actionable leads

Centralized exchanges remain critical points for legal discovery and attribution


⸻


Why This Case Matters


This case underscores a critical reality:


Blockchain investigations are not just about following the money—they are about understanding behavior, identifying patterns, and converting technical data into actionable intelligence.


Garrett Investigations LLC specializes in cryptocurrency tracing, blockchain forensics, and OSINT-driven investigations, delivering results that meet the standards of attorneys, law enforcement, and the courts.


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