Highlights:
- U.S. authorities seized nearly $5 million in Tether linked to pig butchering scams, showcasing their efforts in combating crypto fraud.
- The FBI traced funds through multiple crypto wallets, recovering assets despite criminals’ attempts to obscure their tracks.
- Victims lost life savings, with scammers using fake romantic relationships and fraudulent crypto platforms to deceive them.
U.S. authorities have successfully seized nearly $5 million in Tether, a cryptocurrency pegged to the U.S. dollar, linked to a complex investment fraud scheme known as “pig butchering.” This operation, spearheaded by the U.S. Attorney’s Office for the Eastern District of North Carolina, marks a significant step in combating the growing threat of cryptocurrency scams.
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👮♂️ The FBI returned $5 million to victims of the “Pig Butchering” scam.
💔 Criminals targeted victims by pretending to form romantic relationships online. Once trust was established, the scammer would suggest an easy way to make money and introduce the victim to a fake…
— GN Crypto (@GNcrypto_news) August 23, 2024
Seizure of $5M in Tether
The seized funds were traced to cryptocurrency addresses allegedly associated with laundering proceeds from “pig butchering” scams. These scams involve criminals building fake romantic relationships with victims to gain their trust before persuading them to invest in fraudulent cryptocurrency platforms. Victims, believing they are making legitimate investments, end up losing substantial amounts of money. One victim even lost his entire retirement account to this scam.
Federal Bureau of Investigation (FBI) agents played a crucial role in tracing these funds. Despite the criminals’ attempts to obfuscate their tracks by moving the funds through multiple cryptocurrency wallets, the FBI was able to pinpoint the illicit transactions. Tether assisted in recovering the seized funds, marking a significant victory in the ongoing battle against cyber-enabled fraud.
U.S. Attorney Michael Easley highlighted the significant consequences of these scams, stating, “Americans are losing their life’s savings to investment frauds as funds are being rapidly transferred to cryptocurrency accounts overseas.” He added that even when criminals operate from abroad, U.S. authorities are determined to claw back every dollar and return the money to the victims.
The Growing Threat of Pig Butchering Scams
The complexity and increasing prevalence of pig butchering scams pose a significant challenge for law enforcement agencies. These scams typically involve criminals using social engineering tactics to build trust with victims for weeks or months. Once trust is established, victims are directed to fictitious cryptocurrency trading platforms that mimic legitimate ones. These platforms display fake investment portfolios with unusually high returns, enticing victims to invest more money.
When victims try to withdraw their funds, scammers respond with excuses, claiming they need to pay taxes or penalties, which serve as tactics to extract even more money. By the time victims realize the scam, the criminals have often vanished, leaving them with devastating financial losses.
FBI Charlotte Special Agent in Charge Robert M. DeWitt highlighted the evolving nature of cyber-enabled fraud, stating, “As criminal actors continue to evolve in the world of cyber-enabled fraud, the FBI and its law enforcement partners must also evolve.” He noted that the FBI’s recent $5 million Tether seizure demonstrates their ability to adapt in defending scam victims. In June, the U.S. Federal Trade Commission (FTC) also warned consumers about the rise in pig butchering scams, urging vigilance when engaging in online relationships or investing in cryptocurrency.
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