FBI Retrieves $5 Million From Swindling Crypto Scheme Disguised as Pig Butchering
Authorities in North Carolina took possession of approximately $5 million in cryptocurrency linked to an investment scam. The fraudulent scheme, dubbed “pig butchering,” involved criminals forming fake romantic relationships to deceive victims into investing in fake cryptocurrency platforms. Many victims lost their entire life savings, including one who lost their entire retirement account.
Cryptocurrency Seized in Raleigh Investment Fraud, Totaling $5 Million
The US Attorney’s Office for the Eastern District of North Carolina announced on Thursday the seizure of close to $5 million worth of cryptocurrency associated with an investment fraud case in Raleigh.
Tether, a cryptocurrency tied to the US dollar, was among the assets confiscated. It was connected to a complex operation where criminals laundered money obtained from victims falling for “pig butchering” scams. The US Attorney Michael Easley stated, “Americans are losing their life savings to investment frauds as funds are being rapidly transferred to cryptocurrency accounts overseas.” He added:
“In this case, one victim lost his entire individual retirement account to a scam. We are clawing back every dollar we can, even when criminals are located abroad.”
In these scams, fraudulent actors establish fictitious romantic relationships with victims to gain their trust and convince them to invest in fake cryptocurrency platforms that mimic legitimate ones. These counterfeit platforms display fictional profits to entice victims to invest more. However, victims find themselves unable to access their funds and are often demanded additional payments disguised as taxes or penalties.
Despite the criminals’ attempts to conceal the money through multiple cryptocurrency wallets, FBI agents succeeded in tracing and recovering a portion of the funds.
Robert M. DeWitt, the Special Agent in Charge of FBI Charlotte, commented on the cryptocurrency seizure, stating:
“This cryptocurrency seizure serves as an example of the FBI adapting to the changing criminal landscape and fighting for victims of cyber-enabled fraud schemes.”