Prosecutors charge Madagascar scammers in NFT-stealing scheme based on fake online dating profiles

Prosecutors announced charges against six alleged scammers based out of Africa who targeted Americans with fake non-fungible token (NFT) investment scams by posing as women on dating websites, netting hundreds of victims.

According to an affidavit for the arrest of of the six people — Chui Kok Wa, Gislen Neukeu, Shamusa Ninsiima, Clement Mugiraneza, Merveille Mudacumura and Nicodemus Hingima Monyancha — the criminal group with connections to China and Malaysia opened a scam compound in Madagascar early last year.

“In the scheme, scammers posed as beautiful women who met victims on dating websites, eventually enlisting them to connect their cryptocurrency wallets to fraudulent websites associated with the NFT investments,” the Justice Department said in a news release Tuesday. “Once connected, the scammers willed the victims to continue to fund their cryptocurrency wallets, and then surreptitiously pulled money from the victims’ wallets without their knowledge.”

The FBI identified approximately 74 cryptocurrency wallets associated with approximately 800 victims in the scheme, for an estimated loss of at least approximately $516,695, according to the affidavit and news release.

The U.S. District of Columbia’s Scam Center Task Force, the FBI’s field office in Honolulu and the U.S. Attorney’s Office for the District of Alaska made a trip to Madagascar in August to review electronic devices seized from scam compounds. Interviews with scam compound workers there revealed that Cambodian police activity and armed conflict between Thailand and Cambodia led to operations at a Cambodian scam compound being moved to Madagascar.

Phones for the alleged scheme leader, Wa, contained employment contracts and scripts for what scammers should say to victims, which said they would be committing “an emotional scam.” The devices that officials reviewed and the interviews also established further connections between the scammers and Southeast Asia and China.

After the initial interviews, though, Madagascar repatriated some suspects to China before the investigation was complete, according to the Justice Department.

“Today, [D.C.] U.S. Attorney Pirro called on the Madagascar government to cooperate with the United States, extradite the six charged defendants, and further noted that the government had obtained a material witness warrant to interview 15 employees of the scheme, who claimed they were human trafficked and abused by Wa, but are believed to be held in jail in Madagascar,” the release stated.

In the same release, DOJ said that the Scam Center Strike Force had crossed the $1 billion threshold in cryptocurrency recovered in its first year.