US prosecutors charge six over alleged Madagascar crypto investment scam

Reporting: sourced factual coverage reviewed by the editorial desk.

U.S. prosecutors have announced charges against six people in an alleged cryptocurrency investment fraud linked to scam compounds in Madagascar, saying the operation used dating sites and fake NFT investments to reach American victims.

The Justice Department said on October 27 that affidavits unsealed that day describe an operation that allegedly opened compounds in Madagascar in early 2025. The department said the FBI assisted Madagascar authorities in August 2026 after local police took down 13 compounds and seized more than 3,200 electronic devices. The August operation and the October announcement are separate events.

According to prosecutors, people behind the scheme used fictional personas to build relationships with potential victims, then directed them to websites presenting purported NFT investment opportunities. The department alleges victims were persuaded to connect cryptocurrency wallets and add funds, which were then taken without their knowledge. These are allegations in an ongoing criminal case, not findings of guilt or convictions.

The FBI identified approximately 74 cryptocurrency wallets associated with roughly 800 people nationwide who reported losses after interacting with fraudulent investment platforms, the department said. It did not present that figure as independently verified losses in this report. The department also said it had seized websites associated with the alleged scheme and was seeking extradition of the six charged defendants.

For readers, the warning is practical: a person met online can steer a conversation toward an investment platform that looks legitimate. A wallet connection or approval can expose assets to a malicious service; a website display or claimed profit is not evidence that an investment exists. Users should check what permissions they are being asked to grant and verify an investment independently before connecting or transferring funds.

The Justice Department separately said its broader strike force had restrained more than $1 billion in cryptocurrency connected with fraud investigations. That cumulative figure covers its wider work and should not be confused with losses attributed to the Madagascar allegations.

Sources & evidence

U.S. Department of Justice — October 27 announcement and linked affidavit ↗

Author disclosure

AI assisted research and drafting from the named public Justice Department release; no interviews or independent investigation were conducted. RailsRecord is a Joaico publication; relevant publisher holdings have not been established.

Corrections

Identify this article and the disputed claim in a correction request to corrections@railsrecord.com ↗. The publisher reviews supporting primary evidence.