US authorities have seized approximately $9 million in cryptocurrency linked to a criminal group known as the “pig butchering” gang. This group has been using social media and dating sites to target individuals worldwide, manipulating them into investing in a cryptocurrency platform controlled by the fraudsters [1] [2] [3]. The Department of Justice has successfully traced the funds and utilized a technique called “chain hopping” to exchange the seized funds for different digital currencies. This seizure is part of ongoing efforts to disrupt cybercriminals and serves as a warning to others involved in similar investment scams.
Description
US authorities have recently seized approximately $9 million in cryptocurrency linked to a criminal group known as the “pig butchering” gang. This group has been targeting individuals worldwide through social media and dating sites, using online romances as a means to manipulate victims into investing in a cryptocurrency platform controlled by the fraudsters [2]. The Department of Justice has been able to trace the funds through cryptocurrency wallet addresses associated with the gang and has utilized a technique called “chain hopping” to exchange the seized funds for different digital currencies. This seizure is part of ongoing efforts to disrupt cybercriminals and serves as a warning to others involved in similar investment scams.
It is worth noting that earlier this year, the Department of Justice seized around $122 million worth of cryptocurrency from similar investment scams [3]. Investment fraud [1] [2] [3], including pig butchering and other cryptocurrency-related scams [1] [2] [3], has resulted in the highest reported losses in 2022 [1], totaling $3.31 billion [1]. To combat these scams, victims are encouraged to report any suspicious activities to organizations such as the FBI’s Internet Crime Complaint Center (IC3) and the Federal Trade Commission (FTC).
Conclusion
This recent seizure highlights the effectiveness of public-private partnerships in combating cybercrime and emphasizes the importance of cooperation between cryptocurrency companies and government agencies to protect consumers and maintain the integrity of the crypto ecosystem. The trend of pig butchering crypto scams has become a global concern, prompting urgent warnings from law enforcement agencies worldwide [4]. In fact, in April of this year [4], the Department of Justice seized cryptocurrency worth $112 million in a crackdown on pig butchering scams. The Internal Revenue Service (IRS) has also issued a warning, specifically highlighting that US taxpayers are currently the most targeted demographic for these schemes [4]. The seizure is part of a larger trend of cryptocurrency-related crime [5], which reached a record $20 billion in the past year [5].
References
[1] https://sigmacybersecurity.com/9-million-seized-from-pig-butchering-scammers-who-preyed-on-lonely-hearts/
[2] https://osintcorp.net/9-million-seized-from-pig-butchering-scammers-who-preyed-on-lonely-hearts/
[3] https://www.tripwire.com/state-of-security/9-million-seized-pig-butchering-scammers-who-preyed-lonely-hearts
[4] https://www.coinsurges.com/us-seizes-9-million-in-tether-allegedly-linked-to-pig-butchering-crypto-scams/
[5] https://www.gocryptoblogs.com/technology/feds-seize-9-million-in-crypto-pig-butchering-scam-probe/
