US authorities have recently made a breakthrough in the fight against cryptocurrency fraud, announcing the seizure of millions of dollars’ worth of cryptocurrency tied to a romance and investment scam group that employed deceptive tactics known as “pig butchering.”
The Department of Justice (DoJ) revealed that it successfully intercepted $9 million worth of Tether, a cryptocurrency pegged to the US dollar. By tracing the funds through cryptocurrency addresses associated with a known fraud syndicate, the DoJ was able to disrupt the illicit activities of a group that targeted more than 70 victims.
The scam, commonly referred to as pig butchering, typically begins with unsolicited messages on social media platforms or dating websites. After building trust with the victim, scammers persuade them to invest in cryptocurrencies through fraudulent trading platforms that do not actually exist.
Acting assistant attorney general Nicole Argentieri of the Justice Department’s Criminal Division expressed hope that the seizure would provide closure to the victims impacted by the scam ring and serve as a deterrent to cybercriminals.
“This significant seizure disrupted the financial operations of an organized network of scammers who defrauded millions from victims across the United States,” Argentieri stated. “These criminals deceive ordinary investors by creating false websites that claim to generate profits. In reality, these international fraudsters are simply stealing cryptocurrency, leaving victims with nothing.”
According to the DoJ, analysts from the US Secret Service were able to track deposits made by victims as they were rapidly laundered through numerous cryptocurrency addresses and converted into different currencies using a technique known as “chain hopping.”
This case underscores the importance of reporting fraud to authorities like the FBI’s Internet Crime Complaint Center (IC3) and the Federal Trade Consumer Sentinel Network, even when victims believe all hope is lost.
While the recent seizure of $9 million is significant, it is dwarfed by the $112 million confiscated in April from six cryptocurrency wallets used to launder proceeds from pig butchering schemes.
The relentless efforts of law enforcement agencies to combat cryptocurrency fraud highlight the ongoing battle against cybercrime and the importance of vigilance in safeguarding against online scams. By staying informed and reporting suspicious activities, individuals can play a crucial role in protecting themselves and others from falling victim to fraudulent schemes.