A U.S. federal court has sentenced a Saipan woman to 71 months in prison for running a bitcoin-related fraud scheme that targeted victims across several U.S. jurisdictions, including elderly women in the Pacific.
The Department of Justice said 30-year-old Sze Man Yu Inos, also known as “Yuki,” was convicted of wire fraud and ordered to pay $769,355 in restitution. The court also imposed a personal money forfeiture judgment of $684,848 and a $200 special assessment.
Fraud targeted elderly women in Pacific islands
Prosecutors said Inos defrauded victims between November 2020 and January 2022, concentrating on elderly women in Saipan and Guam.
She allegedly claimed to be part of a wealthy Chinese family with a strong track record in cryptocurrency trading, using that false background to win the trust of her targets.
According to the prosecution, Inos built emotional and personal connections with victims, often referring to them as maternal figures. After gaining their confidence, she persuaded them to transfer funds for supposed bitcoin investments.
The scheme later expanded to additional victims in Washington and California.
Scam continued after legal action began
Court documents show Inos continued her fraudulent activity even after legal proceedings had started. Authorities classified the scheme as affinity fraud, in which perpetrators exploit personal, social or community relationships to deceive their targets.
Officials said the case underscores how personal trust, emotional bonding and shared identity can be weaponized to extract large sums under the guise of digital asset opportunities.
Digital asset fraud losses top $11 billion
The sentencing comes amid mounting concern over digital asset crime in the United States. According to the FBI, cryptocurrency-related fraud caused $11.3 billion in losses last year, accounting for more than half of the $20.9 billion lost to internet crime nationwide.
Analytics firm Chainalysis projects that total funds stolen through cryptocurrency scams and fraud could exceed $17 billion in 2025. Impersonation scams, which include tactics similar to those Inos used, have surged more than 1,400% in 2025 compared with the previous year, the firm reported.
These crypto investment schemes are now the largest single source of reported financial losses in the U.S., accounting for $7.2 billion in 2025 alone. Many operations use polished, fake trading platforms that display fabricated profits to push victims into sending larger and more frequent transfers.
Warning signs for market participants
Market participants are being urged to stay alert to key red flags. Promises of guaranteed high returns are widely regarded as a warning sign, especially in a volatile asset class such as bitcoin where no legitimate product can ensure profits.
Authorities also highlight tactics such as creating a sense of urgency, exclusivity or emotional dependence—especially when these come from someone who has spent time building rapport over social media or messaging apps.
Independent verification of any platform or individual offering crypto-related opportunities is being emphasized as essential, particularly when communication moves quickly from casual contact to money transfers.
Volatile market conditions fuel scam narratives
The case unfolds against a backdrop of heightened volatility in digital asset markets. Bitcoin has been trading around $77,000 after a recent rally faded on geopolitical tensions and profit-taking.
Scammers often exploit such conditions by promising “safe” strategies or stable, outsized gains that appear to sidestep market swings, a narrative that can be especially persuasive to those unfamiliar with crypto risk.
Regulators shift enforcement focus
Regulatory agencies are intensifying their focus on direct fraud while reassessing broader enforcement strategies in the digital asset space.
The Securities and Exchange Commission has recently dropped several cases against large crypto firms, a move seen by legal analysts as a possible shift toward prioritizing clear instances of direct harm to the public rather than sweeping actions against the sector as a whole.
At the same time, the Commodity Futures Trading Commission is stepping up scrutiny of fraud and insider trading in derivatives markets tied to digital assets.
Officials say they expect enforcement around crypto-related fraud, including affinity schemes like the one run by Inos, to remain a high priority as losses continue to grow.
Worried about crypto scams? Learn key crypto safety standards every trader should know to better protect yourself and loved ones.
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