Hunan Authorities Dismantle USDT Crypto Scam, 3 Arrested for Social Media Fraud via Trojan Horse

Chinese authorities in Hunan Province have dismantled a cryptocurrency-related fraud operation involving U.S. Digital Dollar (USDT) transactions, with three suspects arrested for orchestrating a scam targeting foreign individuals through social media platforms. According to a report by Yuxian Police, the operation was uncovered on July 24, 2025, following an investigation into fraudulent activities conducted since April 2025 [1]. The suspects—Tang, Zhang, and Xu—were apprehended after allegedly using over 30 mobile phones, 10 computers, and 30 overseas SIM cards to facilitate their scheme [1].

The fraud involved the creation of fake personas on international versions of social media platforms, including Tinder, Telegram, WhatsApp, and Twitter. The suspects used edited photographs of Zhang to portray themselves as affluent single women or cryptocurrency investors based abroad. These fabricated identities were used to target males over 26 years old, with the perpetrators following scripted interactions to build trust and eventually lure victims into investing in USDT [1]. Once victims were convinced to transfer funds into a Trust wallet, the suspects deployed a trojan horse via deceptive links, enabling unauthorized access to the victims’ cryptocurrency assets [1].

The modus operandi highlights the growing sophistication of digital fraud, leveraging both emotional manipulation and technical exploitation. The police report noted that the suspects provided false claims of "better mining mechanisms" and "airdrop rewards" as incentives for victims to click on malicious links [1]. The trojan horse then allowed the fraudsters to siphon USDT from victims’ wallets, effectively transferring the assets without their knowledge [1].

The case underscores the risks associated with cryptocurrency transactions, particularly when conducted through unsanctioned or unverified platforms. While the Yuxian Police did not specify the total financial loss incurred by victims, the operation’s scale—evidenced by the volume of devices and SIM cards seized—suggests a systemic rather than isolated fraud attempt [1]. Authorities have not yet announced whether the suspects were acting independently or as part of a larger network, but the use of international platforms indicates potential cross-border collaboration [1].

Source: [1] BlockBeats News [https://www.theblockbeats.info/en/flash/305119]