US authorities have recently made a breakthrough in the fight against cryptocurrency fraud, seizing $9 million in Tether linked to a romance and investment fraud gang. This gang employed a tactic known as “pig butchering” to scam over 70 victims out of their hard-earned money.
The Department of Justice (DoJ) was able to track down the funds by following cryptocurrency addresses associated with the fraudsters. Pig butchering typically begins with unsolicited messages on social media or dating sites, where scammers build trust with their victims before convincing them to invest in fake trading platforms.
Acting assistant attorney general Nicole Argentieri expressed hope that the seizure would provide closure to the victims and serve as a warning to cybercriminals. She emphasized the deceptive nature of these scams, where criminals create fake websites to lure in unsuspecting investors.
The DoJ revealed that the US Secret Service analysts traced the victims’ deposits as they were laundered through multiple cryptocurrency addresses using a technique called “chain hopping.” This case underscores the importance of reporting fraud to agencies like the FBI’s Internet Crime Complaint Center (IC3) and the Federal Trade Consumer Sentinel Network.
While this seizure is significant, it is dwarfed by the $112 million captured in April from six cryptocurrency wallets used in similar pig butchering schemes. This latest success highlights the ongoing battle against cryptocurrency fraud and the importance of vigilance in protecting investors from falling victim to these scams.
By reporting suspicious activities and staying informed about the latest fraud tactics, individuals can help combat financial crimes and protect themselves from falling prey to deceptive schemes in the cryptocurrency market.