My dad took out loans he cannot pay off because of a crypto scam

Hello everyone, I’m reaching out here because I really need to vent and hopefully get some advice about my dad. He recently got scammed out of 55k through a crypto scam, and it all happened in just two months. It started when he received an email encouraging him to buy Ethereum, claiming it would yield significant returns. He ended up taking out an initial loan of 30k to invest in Ethereum. Fast forward a month and these scammers created a fake wallet for him, showing him profits of over 200k. When he attempted to withdraw 180k, they told him he needed to pay 24k for transaction fees. This led him to take out another loan for that amount. I only found out about this yesterday through my brother, who mentioned that my dad had asked him for another 15k to ‘verify’ his account. That’s when we realized it was a scam. I’m feeling so frustrated and angry that he didn’t come to us for help to see if it was legitimate. He’s the sole provider for our family, which includes my mother and sister, and he doesn’t make a lot of money. The total loans he has taken out come to around 54k, and he simply cannot pay them back. He was counting on the ‘profits’ he supposedly made from this scam to cover those loans. You might wonder how he managed to secure these loans despite not having a high income, and I think it’s because his credit score is over 800. My dad came to this country as an immigrant and worked hard for over 30 years to provide for us, and now I’m just completely shocked that this has happened to him. He has always been the one holding everything together, and seeing him go through this is heartbreaking. He’s really stressed out, and I’ve never seen him cry until now. What can we possibly do? He seems to have given up on caring about his credit score and we’re just trying to find a way to solve this issue. These loans are all under his name and credit, so it’s a lot to deal with. Any help would really mean a lot.

I’m really sorry to hear what your dad is going through. Unfortunately, there’s often not a straightforward solution for situations like this. These types of scams are usually operated by groups that are untouchable, and it can be really difficult to recover lost funds.

Have you and your brother thought about whether your dad should file for bankruptcy? It might be his best option given the circumstances. It could help him manage the loans better.

Devin said:
Have you and your brother thought about whether your dad should file for bankruptcy? It might be his best option given the circumstances. It could help him manage the loans better.

That’s something we’re considering, but I’m really worried about how it would affect his retirement or social security benefits if he goes that route. Do you think those could be at risk?

@Mal
It really depends on the state laws and the type of retirement accounts he has. Even if we knew your location, it would be hard to give specific advice. Consulting a bankruptcy lawyer would provide him with tailored information regarding his finances.

It sounds like your dad got pig butchered, which is a term for these kinds of scams that are becoming more common. I’d recommend that you contact the FBI. They might not be able to recover the money, but they can provide guidance and there might be other victims who have shared their experiences.

@Fox
Does he really need to contact the FBI or local police? I’m just worried they won’t be able to do much, and he’s not very confident in his English, which makes him nervous about reaching out.

Mal said:
@Fox
Does he really need to contact the FBI or local police? I’m just worried they won’t be able to do much, and he’s not very confident in his English, which makes him nervous about reaching out.

He doesn’t have to, and unfortunately, there’s a good chance they wouldn’t be able to help him much anyway. But it might be worth it just to have it on record, even if the local police might not be able to assist.

I’m really sorry this happened to your dad. It’s all too common these days, and many people end up losing everything in these scams. I’ve heard about friends who lost their entire retirement savings and ended up in debt and bankruptcy because of it.

This situation is truly heartbreaking. Do you know if the loans he took out were unsecured? That could change the dynamic of how he handles them.

Ziv said:
This situation is truly heartbreaking. Do you know if the loans he took out were unsecured? That could change the dynamic of how he handles them.

I’m pretty sure they are unsecured loans since he only owns his car and doesn’t have much else as collateral.