The money, seized during a 2025 investigation, was returned Friday to the three victims who were collectively scammed out of a total of $27,400, according to the office of Essex District Attorney Paul F. Tucker.
The victims were scared into converting cash into cryptocurrency and send it to fraudsters posing as customer service reps and federal agents, prosecutors said.
Three residents of Essex County have been reimbursed $20,000 that they were tricked into paying as part of a digital currency scheme, law enforcement officials said.
The victims were duped in sophisticated scams involving a fake PayPal customer service representative, a Facebook message about a “compromised” account, and an email soliciting payment to get rid of a computer virus, prosecutors said.
Cryptocurrency is digital currency that operates on blockchain networks, a database that stores information, such as the value of a transcaction, in blocks.
The fraud was carried out via crypto-ATMS at convenience stores and gas stations in Danvers, Lynnfield, and New Hampshire, Tucker’s office said.
Cryptocurrency ATMS are kiosks that allow customers to exchange cash for electronic money like Bitcoin. They are often located in convenience stores and resemble bank ATMS.
Because of crypto runs on rapid technology, recouping funds often make it impossible to recoup funds. “These outcomes are often, sadly, not possible,” he said in a statement Monday.
Victims rarely recover every lost cent. Fees, conversion rates and tracing issues make full restoration impossible, Tucker said.
The Essex County victims, for example, collectively lost $27,400 but only received $20,000, officials said.
Last year in Massachusetts more than $1 billion in cryptocurrency losses were reported to the Internet Crime Complaint Center, Tucker’s office said.
Tucker said he offered the stories of the Essex County victims as “cautionary tales.”
A Middleton woman’s troubles began when she had a problem logging in to her PayPal account. The woman spoke on the phone with someone she thought was a customer service representative. She was told her account had been hacked and to create a new one, Tucker’s office said.
The “rep” also told the woman $19,000 had been fraudulently used from her account, but if she sent $10,000, they would “call it even,” Tucker’s office said.
The Bitcoin Depot ATM machine she used was located at the Country Farm convenience store on Maple Street in Danvers.
Middleton Police Detective Adam Maccini got involved, obtained a search warrant, and retrieved the funds from the scammer’s digital crypto-wallet, prosecutors said.
In Salem, a man in his 70’s received an email saying he needed to pay $450 to get rid of a computer virus.
The man tried to send $200 but was told he had accidentally withdrawn $20,000 from the scammer’s account.
The scammer’s had gained remote access to the man’s computer and showed him doctored digital bank statements showing he had $20,000 extra in his account.
The man was convinced that he needed to send the money “back,” Tucker’s office said.
He deposited $4,400 into a crypto-ATM kiosk at the Pump ‘n Pantry gas station in Lynnfield.
In Andover, a man in his 60s sent scammers an estimated $12,000. His transaction was made at a Bitcoin Depot ATM machine at a Cumberland Farms in New Hampshire.
While on Facebook, the man received a message, with a phone number, saying his account had been “compromised.”
He called the number which was answered by alleged federal agents.
The agents threatened criminal charges. They also told the man not to tell his wife or anyone else.
“In a state of fear and panic, he submitted to their demands but also took a photo of the crypto-ATM screen containing the crypto-wallet ID and transaction amount,” Tucker said.
Everyone — from bank tellers to store clerks to bystanders — can play a role in deterring these crimes, Tucker said.
“If you see someone in a situation that you suspect might be a scam in process, please say something,” Tucker said. “Sometimes, all it takes is another human being saying, ‘Hold on, no legitimate entity would ask you to do what this unknown person is asking you to do.’”
Tonya Alanez can be reached at tonya.alanez@globe.com. Follow her @talanez.