Victim says he's out tens of thousands of dollars after cryptocurrency scam

MIDDLETOWN TWP., Pennsylvania (WPVI) -- Pennsylvania state police are investigating two alleged cryptocurrency scams reported within the past two months in Delaware County.

One victim tells Action News he's out tens of thousands of dollars.

He asked that we hide his identity.

"It seemed like a really good way to make some extra money because I am retired," the victim told Action News Investigative Reporter Chad Pradelli.

He says a friend referred him to a financial opportunity: day trade cryptocurrency.

"Told me about this other person who was helping him out. Got set up and tried it with a little bit of money," he said.

The platform appeared legitimate. It seemed he was making money.

He even made a couple of small withdrawals.

"When I took out money, it worked," he said.

But when he wanted to withdraw a large sum, the warning flags blew like hurricane winds.

"They said they had to do a capital verification and to send them $278,000 and, once that was released, they'd send the money back."

He now believes he was scammed. He reported the alleged fraud to state police.

"Like a pit in my stomach. How could I be so stupid?" he said.

Drexel professor and expert in computer and technological crimes Rob D'Ovidio says crypto scams are exploding worldwide. Some estimates peg it at a multi-billion dollar fraud industry.

"The Wild Wild West when it comes to crypto. We're not connecting to any sort of regulatory regime as we would with normal investments," D'Ovidio says.

D'Ovidio's advice is to stick to platforms that advertise extensively.

"That gives some assurances that they are legitimate," he added.

D'Ovidio says recovering stolen investments in the crypto space is nearly impossible with many of these criminal networks operating in countries without extradition treaties with the United States.

State police have not commented on the investigations.