Adetomiwa Seun Akindele received a 71-month prison sentence in the US for defrauding a Colorado widow of approximately $1.7 million in a cryptocurrency romance scam, highlighting ongoing fraud risks in the crypto market.

Executive Summary

Adetomiwa Seun Akindele, a 37-year-old Nigerian national, has been sentenced to 71 months in federal prison in Colorado for orchestrating a cryptocurrency romance scam. Akindele defrauded a widowed Colorado woman of approximately $1.7 million. This case underscores the persistent threat of cyber-enabled financial fraud within the digital asset ecosystem and signals active law enforcement efforts against such criminal activities.

The Event in Detail

From January 2018 to October 2018, Akindele impersonated a wealthy Italian American businessman named "Frank Labato" on a dating website. He cultivated a relationship with the victim, fabricating personal and professional details. Subsequently, Akindele claimed to be in a financial crisis related to his purported work abroad and solicited funds from the victim. Under Akindele's direction, the victim opened a cryptocurrency exchange account and wired over $1.6 million. Akindele then converted these funds into various cryptocurrencies, laundered them across multiple crypto exchanges, and ultimately converted them back into U.S. dollars, which he deposited into his personal bank accounts. He further attempted to reassure the victim by executing three fraudulent promissory notes.

Akindele pleaded guilty to one count of wire fraud and one count of money laundering. In addition to the 71-month prison sentence, he has been ordered to pay $1,692,945 in restitution and a forfeiture money judgment for the same amount. Upon completing his sentence, Akindele will be deported to Nigeria.

Financial Mechanics

The core of the scam involved the manipulation of cryptocurrency transactions to obscure the illicit flow of funds. The victim was instructed to initiate fiat currency transfers to a cryptocurrency exchange account. These funds were then immediately converted into various digital assets. Akindele subsequently moved these cryptocurrencies through multiple exchanges, a common money laundering technique designed to break the transaction chain and complicate tracing efforts. The final step involved converting the laundered cryptocurrencies back into U.S. dollars and depositing them into bank accounts, thereby integrating the illicit proceeds into the traditional financial system. The use of fraudulent promissory notes served as a deceptive financial instrument to maintain the victim's trust and prolong the scheme.

Market Implications

This case is part of a larger trend of cyber-enabled financial fraud targeting individuals through digital asset platforms. Research indicates that criminal networks engaged in "pig-butchering" scams, a category that includes romance fraud, have transferred over $75 billion through cryptocurrency exchanges globally between January 2020 and February 2024. This highlights the substantial scale of these operations and their reliance on the crypto infrastructure.

The global nature of such crimes necessitates international law enforcement cooperation. A recent INTERPOL operation, HAECHI V (July - November 2024), involving 40 countries, resulted in over 5,500 arrests and the seizure of more than $400 million in virtual and traditional currencies. The operation specifically targeted romance scams and identified emerging threats, such as the "USDT Token Approval Scam," which exploits legitimate platforms to gain unauthorized access to victims' cryptocurrency wallets. The regulatory landscape is evolving in response; for instance, the UK's 2025 draft regulations will mandate pre-transaction AML/KYC checks for crypto exchanges, requiring identity verification and screening against known scam addresses.

Expert Commentary

United States Attorney Peter McNeilly stated, "This sentence both serves justice to the victim and helps prevent this individual from scamming someone else." McNeilly added, "This case should be a reminder to the public to be cautious when engaging with people they meet online - especially when those people are asking for money." FBI Denver Special Agent in Charge Mark Michalek emphasized the predatory nature of these schemes, noting, "Romance scammers are relentless and cunning, preying on trust and emotion to exploit victims."

Regarding the broader phenomenon of crypto scams, finance professor John Griffin commented that "These are large criminal organized networks, and they're operating largely unscathed." Vince Nolan, counsel at Duane Morris LLP, described the basic mechanism: "At its most basic, the crypto romance scam is when someone sets up a fake identity, gets into an online romance with a victim and then uses that emotional connection to manipulate the victim into giving the scammer money under false pretenses." Mauro Wolfe, also counsel at Duane Morris LLP, advised, "Crypto investors should be aware of red flags when investing in crypto projects. A red flag is where you are contacted by a complete stranger, often attractive, who seeks to commence an online relationship and eventually brings up investments in digital assets."

Broader Context

Romance scams leveraging cryptocurrency platforms represent a significant threat within the digital economy. These schemes exploit emotional vulnerabilities to facilitate wire fraud and money laundering, often using sophisticated methods to move funds across various exchanges. The successful prosecution and sentencing of Akindele demonstrate the commitment of agencies like the FBI Denver Field Office and the U.S. Attorney's Office for the District of Colorado to combatting crypto-related fraud. The prevalence of such scams, coupled with the estimated $75 billion lost globally, underscores the ongoing need for enhanced public awareness, robust fraud prevention measures by crypto platforms, and strengthened international law enforcement collaboration to safeguard investors and maintain the integrity of the fintech ecosystem.