US authorities have seized nearly $9 million in cryptocurrency linked to a criminal gang involved in investment fraud and romance scams. The funds were connected to cryptocurrency wallet addresses associated with a “pig butchering” gang that targeted over 70 victims globally.
The scam involves luring victims into online romances, gaining their trust, and then manipulating them into investing in a cryptocurrency platform controlled by the fraudsters who eventually vanish, taking all the funds with them. The Department of Justice highlights the prevalence of such scams and emphasizes its commitment to tracking and seizing illicit gains to protect victims. The “pig butchering” scam, one of the fastest-growing types of fraud, exploits victims through online romances, leading them to invest in a fraudulent cryptocurrency platform controlled by the scammers. The US Department of Justice traced victims’ deposits and observed the scammers using techniques like “chain hopping” to quickly launder funds through various cryptocurrency addresses and digital currencies.
Acting Assistant Attorney General Nicole M. Argentieri emphasizes that scammers prey on ordinary investors, and the seizure serves as a reminder that law enforcement will continue to follow the money and seize illicit gains for victims. Earlier this year, the US Department of Justice revealed the seizure of approximately $122 million in cryptocurrency linked to pig butchering investment scams. The FBI’s Internet Crime Complaint Center reported that investment fraud, including pig butchering and other cryptocurrency-related scams, caused the highest losses among reported scams in 2022, totaling $3.31 billion. Victims of internet scams are encouraged to file reports with the FBI’s Internet Crime Complaint Center and the FTC.
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