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DOJ warns of Valentine’s Day romance scams

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DOJ warns of Valentine’s Day romance scams

As Valentine’s Day approaches, the U.S. Attorney’s Office for the Northern District of Ohio is warning the public about a surge in romance scams that target people through online relationships and often lead to financial loss, including requests for cryptocurrency payments.

Summary

  • The U.S. Attorney’s Office for the Northern District of Ohio issued a Valentine’s Day warning about a surge in romance scams, many involving cryptocurrency payments.
  • Scammers build fake online relationships over weeks or months before requesting money for “emergencies,” travel, or bogus crypto investments.
  • Officials urge the public never to send gift cards, wire transfers, or cryptocurrency to someone they have not met in person, citing rising financial losses nationwide.

Criminals behind these schemes exploit victims’ trust and emotions by posing as romantic partners on dating sites, social media and messaging apps.

After building what appears to be a genuine relationship over weeks or months, scammers eventually ask victims for money, often under the guise of emergencies, travel costs or investment opportunities.

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How crypto romance scams typically work

“Romance scammers are not looking for love — they are looking for money,” said U.S. Attorney David M. Toepfer. “They prey on trust and emotion … never send money to someone you have not met in person.”

According to the federal warning, fraudsters typically follow a pattern:

  • They create fake profiles using stolen photos.
  • Claim to work overseas in the military, oil rigs or business.
  • Quickly profess deep feelings or commitment.
  • Shift conversations off public platforms to private messaging.

Red flags include early declarations of love, excuses for not meeting in person, repeated “emergencies,” and unusual payment requests, especially gift cards, cryptocurrency or wire transfers.

Such scams have grown more sophisticated in recent years. In some cases, victims are directed to bogus investment platforms that promise unrealistically high returns before the scammers disappear with funds.

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National reports have found that romance and confidence scams accounted for significant losses, often involving cryptocurrency transactions.

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Crypto World

Crypto VC Paradigm to Launch Prediction Market Terminal

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Crypto VC Paradigm to Launch Prediction Market Terminal

Crypto-focused venture capital firm Paradigm is reportedly building a prediction markets terminal, joining a wider push by exchanges, brokers and crypto firms into prediction markets.

Led by Paradigm partner Arjun Balaji, the prediction market offering will cater to professional traders and market makers, Fortune said in a report on Wednesday, citing sources that said they started working on the project in late 2025.

Paradigm’s offering adds to a growing list of companies looking to offer access to prediction markets, which some forecast could reach $1 trillion in annual volume by the end of the decade.

Paradigm is also considering rolling out an internal market-making desk — an in-house team that provides liquidity by placing buy and sell orders — for prediction markets.

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One of the sources told Fortune that Paradigm is also working with researchers to explore the feasibility of creating prediction market indexes.

“This would entail bundling multiple prediction markets together into one tradable package, much like the S&P 500 combines the stocks of 500 companies into one index,” Fortune said.

Cointelegraph reached out to Paradigm for additional information, but didn’t receive an immediate response.

Related: CFTC’s top enforcer puts prediction market insider traders on notice

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Prediction markets became one of the fastest-growing use cases in crypto last year and have consistently surpassed $10 billion in monthly trading volume.

Coinbase and Gemini have since launched prediction market offerings, while Nasdaq and Cboe are seeking permission to offer prediction market-style binary options.

Paradigm had been looking at ways to get involved in the burgeoning market. It led Kalshi’s $185 million Series C funding round in June and its $1 billion Series E round in December.

The venture capital firm has also created a dashboard showing trading volume and open interest on Polymarket, Kalshi and other platforms across sports, crypto, politics, culture, financials and other topics.

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Legal issues over prediction markets still being ironed out

Kalshi and its biggest competitor, Polymarket, have been dominating prediction markets trading volume. However, other challengers, such as OPINION and predict.fun, have also seen an uptick in trading activity recently.

The rapid growth of the prediction markets space has attracted regulatory scrutiny, with critics concerned that the platforms encourage insider trading and market manipulation, while event contracts based on sporting events are a form of sports betting. 

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US regulators at the federal and state levels are hashing out who should have jurisdiction in regulating prediction markets, while some regulators abroad have outright banned certain prediction market platforms. 

Magazine: IronClaw rivals OpenClaw, Olas launches bots for Polymarket — AI Eye