California Woman Sues Alleged Crypto Scammers for Over $360K in Stolen Digital Assets
On Monday, April 8, 2024, California resident Alona Austria filed a lawsuit against an individual named “Defendant 1” aka “Le” and 20 John Doe defendants in the United States District Court for the Northern District of Florida. The complaint alleges that the defendants were involved in stealing cryptocurrency worth over $360,000 from Austria through an international fraud scheme.
According to the court filings, Austria met Defendant 1 on a dating website in February 2023. Over the next few months, Defendant 1 convinced Austria he could teach her how to successfully trade and earn high returns through cryptocurrency investments. He showed her examples on the messaging platform WhatsApp of his purported trading gains. Defendant 1 claimed he was using a website called short-termtradingset.top to conduct the transactions.
However, short-termtradingset.top was not a legitimate cryptocurrency exchange but rather a fake website designed to deceive people. Defendant 1 had Austria transfer small amounts of cryptocurrency between her valid Crypto.com account and short-termtradingset.top initially to make it seem genuine. She believed Defendant 1 truly wanted to help her learn to profit from cryptocurrency.
From February to July 2023, Austria transferred approximately 92.388 Ethereum and 40,985.19 Tether, worth around $210,000 at the time, from her Crypto.com account to short-termtradingset.top based on Defendant 1’s fraudulent representations. Fake trading statements on the site showed her investments growing significantly in value. When she wanted to withdraw funds, the site claimed she needed to deposit more cryptocurrency first to pay taxes or raise her credit score.
Forensic crypto tracing experts were able to track Austria’s stolen assets on the blockchain to wallets at major exchanges including Binance, Crypto.com, and Gate.io, according to the complaint. The current value of the stolen 92 Ethereum and 40,985 Tether is approximately $362,075.
Austria’s lawsuit asserts that Defendant 1 and his co-conspirators converted her cryptocurrency for their own use through deception and fraud. She is seeking damages for conversion, unjust enrichment, and conspiracy. The complaint also requests that the court impose a constructive trust over any stolen assets still controlled by the defendants and order their return.
Cryptocurrency theft and fraud schemes have become increasingly sophisticated. Scammers often use phishing techniques, fake cryptocurrency exchanges or investment opportunities, and social engineering to convince victims like Austria to transfer their funds under false pretenses. The blockchain’s public record allows tracing stolen digital assets, but recovering them depends on identifying and locating the wrongdoers.
Please contact BlockTribune for access to a copy of this filing.
