Crypto Scammers Steal Former Texas Businessman's Nearly $300,000 Retirement Savings

By Jace Dela Cruz

Jul 10, 2024 04:32 AM EDT

A former Texas businessman has fallen victim to a crypto scam, losing nearly $300,000 of his retirement savings. According to FOX31, Leonid Shteyn, who was in business for 30 years, said the scammers operate "smoothly."

Former Texas Businessman Loses $300,000 From Crypto Scam

The incident began when Leonid Shteyn was approached by an individual who presented an opportunity for lucrative cryptocurrency investment. Trusting the offer, primarily because it came through a friend's referral and involved a payment account at Bank of America, Shteyn proceeded with the investment.

However, Shteyn soon realized that his funds had been confiscated and could not withdraw his money. He described his feelings of devastation upon discovering that the money he had worked hard to save over the years was gone.

Bitcoin — (Photo : Eivind Pedersen from Pixabay)

The Rise of Crypto Scam

Tech security expert Donald McLaughlin of CP Cyber told FOX31 that crypto dealings are neither insured nor regulated, unlike traditional financial transactions.

This lack of protection means that it is generally irrecoverable once scammers take the money, leaving banks powerless to assist. The rise of cryptocurrency scams is a growing concern, with social media platforms becoming a common hunting ground for fraudsters.

According to McLaughlin, while robocalls and emails are traditional methods, scammers are increasingly exploiting social media platforms like TikTok, Facebook, and Instagram to target victims.

Despite the slim chances, the former businessman remains determined to recover his lost funds. His experience underscores the emotional toll such scams can have on individuals.