A Colorado man’s online affair has ended in financial disaster after he fell victim to a crypto romance scam, losing $1.4 million—his entire retirement savings.
The incident, reported by News18 and CBS News, has sparked renewed warnings from law enforcement about the growing threat of online financial fraud.
Crypto Romance Scam Tactics
The victim met a woman named “Erin” on Ashley Madison, a dating site for married individuals seeking affairs. Their conversations quickly moved to WhatsApp, where they exchanged photos and live video calls.
Erin claimed to be a successful investor in cryptocurrency, real estate, and a winery. She shared fake charts and earnings reports to gain his trust.
Within six weeks, the man transferred funds in four separate cryptocurrency transactions totaling $1.4 million. He believed he was earning daily returns, but the money was routed to cold storage wallets—untraceable digital safes that law enforcement cannot access.
“From the time we were introduced, it was probably within a week that I transferred the first of four transactions,” the man told CBS News.
Colorado Man’s Financial Loss
The scammer used emotional manipulation and financial bait:
- Claimed to help him “save money” during a divorce
- Directed him to fraudulent crypto apps
- Promised high returns with no clear explanation
- Demanded an extra $400,000 to “unlock” his funds
Special Agent Zeb Smeester from the Colorado Bureau of Investigation explained,
“We’re seeing a huge increase in scams, especially in the crypto world. In this case, it ended up in cold storage wallets. We can see how much is in there, but we have no way to get to it”.
Online Affair and Emotional Manipulation
Cold wallets are like digital safes with no identifiers. Even though investigators can see the funds, they can’t access them unless the scammer moves them to a cooperative exchange. Most scammers operate overseas, making arrests nearly impossible.
The victim admitted that loneliness, misplaced trust, and greed clouded his judgment. He now hopes his story will serve as a cautionary tale for others.
