Florida, Massachusetts recover $5.4M in crypto scams

Florida and Massachusetts authorities recovered $5.4 million in cryptocurrency tied to romance-turned investment scams and identified victims across six Florida counties. Portions of the funds have been returned to affected individuals.

The recovery was led by the Florida Office of Statewide Prosecution’s Cyber Fraud Enforcement Unit (CFEU) working with the Marion County Sheriff’s Office. Investigators say the fraud began with romantic contact that persuaded victims to transfer money into purported cryptocurrency investments.

Investigators traced and froze wallet addresses, then coordinated with law enforcement partners to seize and reclaim assets. One Marion County resident lost more than $450,000, officials reported.

The Marion County Sheriff’s Office assisted in a related recovery that amounted to $6.5 million in cryptocurrency. From that collection, $700,000 was returned to Florida victims and $1.3 million to Massachusetts victims. The remaining funds will support the CFEU’s enforcement activities.

The CFEU reported increased recoveries this year. In the first quarter of 2026 the unit recovered $3.3 million, which the office said represented 45% of its all-time recoveries. Since the unit’s creation about two and a half years ago, it has recovered $7.2 million; another $12.6 million in frozen crypto assets remains tied up in litigation.

Florida Attorney General James Uthmeier described the operation as ‘historic and monumental’ and stated his office prioritized returning money to victims. Marion County Sheriff Billy Woods expressed anger that scammers target vulnerable people and added that ‘cyber scammers and hackers belong in jail.’

Massachusetts Attorney General Andrea Joy Campbell reported her office receives hundreds of cryptocurrency complaints. She noted the office has deactivated more than 60 scam websites, filed over 30 lawsuits and recovered more than $6 million for victims.

Campbell’s office also cited an enforcement action earlier this year involving crypto kiosk operator Bitcoin Depot. The company reported the unauthorized loss of 50.9 bitcoins, about $3.6 million, in a filing with the U.S. Securities and Exchange Commission. A blockchain investigator known as ZachXBT traced suspicious outflows beginning March 20 and linked some transfers to deposit addresses at the exchange KuCoin; the investigator estimated the theft may have reached 54 bitcoins, about $3.9 million.

Officials said recovered funds will be used to reimburse victims and to support the CFEU’s recovery and investigation work. Authorities emphasized continued cooperation across state lines and with local law enforcement as litigation proceeds and as they seek to dismantle scam infrastructure and pursue prosecutions.