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Office of the Attorney General, Massachusetts

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Region

North America

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Industry

Public Sector

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Product Used

TRM Forensics

Problem

The Massachusetts Attorney General's Office needed a way to protect residents against the increase in consumer complaints around cryptocurrency scams

Results

  • USD 600,000 returned to dozens of victims across cases
  • USD 217,000 in restitution for four SpireBit victims
  • Took down the SpireBit website


The Massachusetts Attorney General’s Office is often referred to as the "People's Law Firm." It serves as a powerful advocate and resource for the residents of Massachusetts, handling a wide range of issues — from consumer protection and fraud prevention to environmental and civil rights enforcement. Within its Public Protection and Advocacy Bureau, the Insurance and Financial Services Division specializes in shielding residents from unfair or deceptive practices, including those in the increasingly prevalent cryptocurrency space.

Lilia DuBois, an Assistant Attorney General, underscores the office’s mission, “The people of the Commonwealth come first. We will do whatever it takes to protect their rights and make them whole.” This commitment is exemplified in cases like Aleksey Madan’s, where the team’s efforts went beyond legal action to deliver life-changing results.

Aleksey’s story

Aleksey, a recent immigrant to Massachusetts with a large family, fell victim to a sophisticated cryptocurrency scam. The scammers, posing as representatives of an investment platform called SpireBit, reached out to him over the course of a year, speaking in Russian to gain his trust. Aleksey recalls, “They offered me investment options with guaranteed profits, backed by a professional-looking website and a trading app. It seemed legitimate.”

Initially hesitant, Aleksey was persuaded to invest USD 50,000 after being promised an equal contribution by his so-called financial advisor. The scammers manipulated him further, citing fake tax liabilities and insurance fees — ultimately extracting a total of USD 141,000. Despite his wife’s warnings, Aleksey continued, hoping to recover his losses. He described feeling like “a drowning person, trying to grab onto anything for support.”

When Aleksey finally realized he had been scammed, he faced the daunting task of seeking help. A journalist’s recommendation led him to the Massachusetts Attorney General’s Office, where Assistant Attorney General Lilia DuBois and her team were already investigating SpireBit.

How the scam operated

The scammers behind SpireBit ran a highly sophisticated operation, targeting vulnerable individuals — particularly elderly Russian speakers in the United States. They began by using deceptive YouTube and social media ads featuring fake endorsements from high-profile figures like Elon Musk. These ads, paired with Russian voiceovers, lent an air of credibility to the scheme and directed victims to SpireBit’s professional-looking website and mobile trading app. Once victims expressed interest, they were contacted by so-called investment advisors, who claimed to be experts in cryptocurrency trading.

The scammers meticulously built trust through personalized interactions, often conducted in the victim’s native language. Aleksey, for example, was assigned a "senior analyst" who presented himself as a knowledgeable guide, sending articles and offering tailored financial advice. Victims were enticed to invest with promises of guaranteed profits, and fake account dashboards showed impressive returns to encourage further deposits. When victims attempted to withdraw funds, they were met with fabricated obstacles, such as fake tax demands or insurance fees, forcing them to send additional money. Ultimately, the scammers vanished, leaving their victims with empty wallets and broken trust.

Taking action

The Massachusetts Attorney General’s Office had recently made a commitment to prioritize fighting cryptocurrency fraud due to a surge in complaints. They leveraged advanced technology, including the TRM Labs blockchain intelligence platform, to track down stolen funds. “The first thing we invested in was a commercial tracing tool,” explained DuBois. “It allowed us to handle these cases efficiently.”

In Aleksey’s case, the tracing process was straightforward. His transactions through cryptocurrency exchanges and kiosks provided key details. TRM Labs’ analytics revealed SpireBit’s extensive operations, involving over 700 addresses and transactions totaling millions of dollars. This data allowed the team to file a civil lawsuit under Massachusetts’ unfair and deceptive practices laws. They also worked with cryptocurrency exchanges to freeze the scammers’ assets and transfer them to a law enforcement-controlled wallet once a court judgment was secured.

Despite challenges, including media attention and dealing with a complex international scam network, the team remained steadfast. Ian McConachie, a paralegal with the office, shared, “We’ve seen victims lose their life savings, and the impact is devastating. Helping them is what drives us.”

Justice restored

The Attorney General’s Office successfully recovered the full USD 141,000 Aleksey lost to the SpireBit scam. The funds were returned to him, offering a lifeline after months of financial and emotional turmoil. Aleksey expressed profound gratitude, “They worked tirelessly to locate my money and make me whole. I’m forever thankful for their support.”

The case’s impact extended beyond Aleksey. The office secured restitution for multiple Massachusetts victims of SpireBit, with USD 217,000 distributed to four Massachusetts victims of SpireBit. To date, the office distributed over USD 600,000 to victims of various crypto scams — and more funds pending. The outcome also highlighted the office’s dedication to protecting vulnerable populations and leveraging cutting-edge tools to combat fraud.

Reflecting on his experience, Aleksey shared advice for others, “Don’t give up. Contact authorities like the Attorney General’s Office — they can make a difference.” Today, he is focused on rebuilding his life and helping others avoid similar scams.

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