California Man Steals $100K From Mother to Invest in Bitcoin: What are Her Options?

The lure of fast gains in cryptocurrency trading and the fear of missing out can create a sense of urgency to pile hard-earned cash into the volatile industry. A California man who is also a crypto enthusiast transferred £72,908 ($100,000) from his retired mother's account into bitcoin investments without her knowledge.

His elder sister, living in Washington, recently wrote to MarketWatch, seeking advice on how she could prevent financial harm to her retired parents in their early 70s.

She claimed that her 'manipulative' brother treats their parents like his 'employees,' telling them how to live their lives, including managing their life savings. When their mother inherited money from her family years ago, her son invested a portion of it in a high-interest account and the rest in bitcoin.

When she checked her balance a few months later, the account was empty as her son had transferred $100,000 into bitcoin without informing her, given that he originally set up the account and had access to the credentials. Although she demanded the money back, the son told her to wait for a few years.

The mother acknowledges that he stole from her, but refuses to act on it, saying that in the will, she would mention that she is owed $100,000 more. The elderly couple is unlikely to bring up the bitcoin issue and have started saying they are almost 'even' because their son gave them his old cars.

Since the parents live far from them in Utah, the father wants an attorney's office to be the estate executor. While the used cars have a combined value of £43,744 ($60,000), the son hasn't yet found the time to transfer the titles of the cars.

Although the parents retired a year ago with £218,724 ($300,000) in cash, have Social Security income, a house worth £400,994 ($550,000), and assets in a 401(k), the daughter is worried they won't have enough money to last their lives and plans to have a power of attorney for them. She wants her parents to leave their money in a trust for her grandkids' college education, but is perplexed about how to approach the complicated issue.

Steps the Mother Can Take to Protect Her Assets From Exploitation

The senior doesn't want to get tangled in a legal battle with her son, given the impact it would have on her mental health and the relationship with her son.

If she wants to change things related to her finances, she should start by changing her bank account passwords and alerting the banks to potential risks of embezzlement, as an extra precaution for transfers made without her consent.

Banks are cautious about phishing scams and financial abuse, and often monitor activities like when older people attempt to make large withdrawals. To minimise the risk of the son taking out loans in their parents' name, the elderly couple could also freeze their credit profile with credit bureaus.

The daughter's idea of a power of attorney could help in the better management of her parents' financial affairs and healthcare decisions if they become incapacitated. She could also serve as an invisible gatekeeper by securing her parents' mobile phones and ensuring that important documents, such as a will, are stored in a safe place.

It is also advisable to stay vigilant if the brother is bordering elder abuse in emotional, financial, or physical form, which can be reported to adult protective services and law enforcement authorities or even the district attorney's office.

The US government-affiliated National Center on Elder Abuse estimated that 1 in 10 people over 60 in the US experienced some form of abuse in 2024. The National Careline can provide guidance in case of elder abuse. Furthermore, any case of identity theft can be reported to IdentityTheft.gov, which is managed by the US Federal Trade Commission.