The U.S. Department of Justice (DoJ) has successfully recouped $2.3 million in cryptocurrency linked to a “pig butchering” fraud scheme that targeted at least 37 individuals across the country. Perpetrators employed social engineering tactics, initially building trust with victims on social media platforms before luring them into fake investment sites. Victims were deceived into depositing cryptocurrency with promises of lucrative returns, only to realize their funds had been stolen.
Law enforcement’s investigation into a 2023 pig butchering scheme in Massachusetts, where a resident lost $400,000, led to the tracing of fund transmissions to two Binance wallets holding approximately $2.3 million in cryptocurrency. Further scrutiny uncovered additional victims from across the U.S. who had fallen prey to similar fraud schemes orchestrated by the same threat actor. In January 2024, authorities utilized a civil forfeiture action to reclaim various cryptocurrencies from the identified Binance accounts.
The recovered funds underscore the significant financial losses incurred by victims, with an average loss exceeding $62,000 per individual. The prevalence of pig butchering scams, highlighted by the FBI’s warning last year, underscores the urgent need for vigilance and independent verification of investment platforms. Victims are advised not to fall for additional demands for payment disguised as withdrawal fees or recovery services, and to report suspected scams to authorities promptly to prevent further losses.
