Aleksey Madan, 69, never imagined he would see his lost money again. But this week, he received a $140,000 check, representing the full amount he lost in a crypto scam. “It feels amazing. I’m overjoyed. And also in shock,” said Madan, who had been a victim of a sophisticated fraud operation.

This payout came after the Massachusetts Attorney General’s Office seized the assets of a fraudulent company called SpireBit, marking a rare victory in the fight against online crypto scams.

How the Scam Worked

SpireBit, which primarily targeted Russian-speaking seniors, ran ads on social media platforms like Facebook and Instagram. These ads falsely promised high returns on investments, with some even using fake endorsements from well-known figures like Elon Musk.

Victims, including Madan, were lured into transferring large sums of money into SpireBit’s crypto wallets. But when they tried to withdraw their funds, they were met with forged bank documents and unresponsive customer service. The entire company was a sham, with fake executives, stock photos, and even a phony address.

NPR’s Role in Exposing the Scam

The fraudulent operation came to light after NPR ran an investigation, featuring the stories of two victims, including Naum Lantsman, a 75-year-old small business owner from Los Angeles who lost his life savings of $340,000. The investigation revealed that SpireBit used a combination of fake LinkedIn profiles and phony documents to appear legitimate.

NPR’s reporting led to financial regulators in the United Kingdom issuing a public warning about SpireBit, describing it as an operation run by “fraudsters.”

Legal Action and Asset Seizure

Following the NPR investigation, the Massachusetts Attorney General’s Office launched a formal inquiry into SpireBit, ultimately filing a lawsuit in December. Investigators posed as customers and managed to track the company’s crypto wallets, which were hosted on the Binance platform.

In May, a court ruled in favor of freezing SpireBit’s assets. Massachusetts officials were able to seize $269,000 from the scam’s crypto wallets, which is now being distributed to four victims, including Madan.

A Growing Concern: ‘Pig Butchering’ Scams

SpireBit’s tactics are part of a larger, fast-growing type of fraud known as “pig butchering.” In these schemes, scammers spend weeks or even months building trust and relationships with their targets before ultimately stealing large sums of money.

According to the FBI, crypto scammers stole more than $5.6 billion from Americans in 2023, highlighting the massive scale of these types of scams.

A Rare Victory, But More Work Ahead

While Aleksey Madan has successfully recovered his lost funds, many other victims, like Naum Lantsman, may never see their money again. Lantsman’s case, which was reported to the California Attorney General’s Office, has yet to lead to an investigation or any legal action.

The victory in Massachusetts provides a glimmer of hope, but it also underscores the need for more aggressive legal efforts to combat the rising tide of crypto-related fraud. As online scams become more sophisticated, law enforcement agencies will need to continue adapting to protect vulnerable individuals.