TL;DR: Bitcoin.com reported on October 10, 2026 that Kuan Tsou, 28, was sentenced in Montgomery, Alabama to five years (one to serve) and ordered to repay $211,000 after a police sting in August 2025. The scam began on Instagram with a fake New York woman and a fake crypto exchange. Regulators say they stopped about $600,000 more, but the victim kept sending money.
What happened
According to Bitcoin.com News, a Montgomery, Alabama resident was approached on Instagram in spring 2025 by someone posing as a woman living in New York. The chat moved to WhatsApp, and a relationship developed before crypto investing came up. Investigators traced the correspondent to Southeast Asia, and the photos belonged to a real New Yorker with no known involvement.
The fake exchange
- The scheme used Bybit's name, but the victim sent money to a fake crypto exchange.
- An initial $45,000 payment appeared profitable.
- After the operation collected $211,000, it demanded about $385,000 more.
- The victim's attempt to make a retirement withdrawal alerted his investment adviser, who raised the alarm.
The sting
On August 22, 2025, Kuan Tsou flew in from California to pick up a box said to hold $300,000 outside a Montgomery grocery store. The box held cut-up paper. Montgomery Police SWAT officers arrested him as he left the parking lot. On October 7, 2026, Circuit Judge J. R. Gaines sentenced him to five years, split to serve one year, for conspiracy involving aggravated theft by deception and financial exploitation of an elder person. He must repay $211,000 and is permanently barred from Alabama's securities industry.
Losses did not end at the arrest
The report says total losses from the pig butchering schemes were about $270,000, and that intervention prevented losses from reaching about $600,000. Even after the arrest, the victim kept sending money to unknown people online. The family asked for a conservator, but the court declined after hearing evidence. Alabama Securities Commission Director Amanda Senn said it is not often that agencies can intercept international criminal operations in crypto cases.
Red flags
- An Instagram “partner” who quickly moves to WhatsApp and then to crypto.
- A trading site that shows quick profits and then asks for more money.
- Someone arriving to collect cash in person: the FBI has warned about crypto-scam cash couriers.
- Pressure to withdraw retirement savings.
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Frequently Asked Questions
What sentence did the courier get?
Five years, split to serve one year, plus $211,000 in repayment and a permanent ban from Alabama's securities industry.
How did the scam start?
With an Instagram contact posing as a New York woman. The photos belonged to a real person with no known involvement.
How much did the victim lose?
The report says total losses were about $270,000, and about $600,000 more was prevented by intervention.
Where do I report a crypto romance scam?
Report to IC3 and the FTC at ReportFraud.ftc.gov, and tell your bank and exchange immediately.
Sources
- Bitcoin.com News: Fake Instagram relationship cost $211K but losses didn't end at arrest (Oct 10, 2026)
- FBI Internet Crime Complaint Center (IC3)
- FTC ReportFraud