US Authorities Take Action Against Pig-Butchering Crypto Scam
The United States Attorney’s Office for the District of Massachusetts has filed a civil forfeiture action to recover cryptocurrency that is believed to be the proceeds of a pig-butchering fraud scheme. The scheme targeted a resident of Massachusetts and involved money laundering. The government aims to forfeit 412,543.555 tether (USDT) and 100.896 Binance coin (BNB) that were seized from two accounts at Binance.com, a cryptocurrency exchange and custodian. The total value of the cryptocurrency is estimated to be around $434,000.
The investigation into the pig-butchering scheme began in early 2023. Scammers use manipulative tactics to obtain funds from victims by establishing trust through online communications. They then entice victims into investing in fraudulent cryptocurrency schemes. Often, victims are tricked into making additional payments before realizing they have been defrauded.
Law enforcement was able to trace the cryptocurrency involved in the fraud and money laundering to two Binance accounts, where it was seized.
The complaint alleges that the defendant’s cryptocurrency is traceable to proceeds of wire fraud and was involved in money laundering. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.
Warnings and Previous Actions Against Pig-Butchering Scams
Multiple U.S. authorities have issued warnings about pig-butchering crypto scams, including the Federal Bureau of Investigation (FBI). In September of last year, the Delaware Department of Justice’s Investor Protection Unit issued a cease and desist order against 23 entities and individuals involved in this type of scam. The order also froze accounts holding cryptocurrencies belonging to the victims. U.S. authorities have also seized domains and cryptocurrency linked to pig-butchering schemes in previous operations.
Hot Take: Crackdown on Pig-Butchering Crypto Scams Intensifies
The U.S. continues its crackdown on pig-butchering crypto scams, taking legal action to recover funds and protect victims. With the prevalence and popularity of these scams increasing, authorities are actively tracing and seizing cryptocurrency linked to fraudulent schemes. The use of civil forfeiture actions allows for the return of funds to victims once claims to the property have been resolved. These efforts, combined with ongoing warnings, demonstrate the commitment of U.S. authorities to combat this type of financial fraud and protect investors in the crypto space.
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