The US Department of Justice has charged two suspects with operating a scheme that laundered at least $73 million in investment fraud, also known as “pig butchering.”
In pig butchering scams, criminals approach targets using various apps messaging, dating platforms, or social media platforms. They try to build a relationship of trust and often create a romantic relationship. They then try to convince victims to make alleged investments on fake platforms. Ultimately, the scammers steal the crypto that the victims invest.
Chinese nationals Daren Li and Yicheng Zhang were arrested on April 12 at Hartsfield-Jackson Atlanta International Airport in Los Angeles.
See also: USA: Suspects detained for involvement in pig butchering scam
Court documents reveal that the defendants and their accomplice stole millions from victims of pig butchering scams.
While investigating the scam, authorities discovered over $341 million in cryptoin one of the crypto wallets used for money laundering. Communications between the suspects and their accomplices also revealed details about commissions, information about the shell companies they used during the laundering process, victim , and interactions with U.S. financial institutions.
“Sophisticated financial fraud schemes, such as pig butchering, pose a clear and present threat to the economic infrastructure of the United States, as countless Americans continue to fall victim to this predatory activity,” said Brian Lambert, Assistant Director of Investigations for the U.S. Secret Service.
Li and Zhang are charged with conspiracy to commit money laundering. If convicted, they face a maximum sentence of 20 years in prison on each count.
See also: Pig Butchering scams: Authorities announce seizure of $9 million worth of crypto
Pig butchering crypto scams are particularly dangerous because they don't require the installation of malware on the victim. Instead, they use social engineering to trick the victim.
As we mentioned earlier, many crypto scams start on dating apps, where the scammer creates a relationship of trust and "love" with the victim to convince them to invest in fake sites.
See also: Investment scams are on the rise – Thousands of fake sites
Security experts are urging people to be wary of anyone who suddenly approaches them via a dating app or social media platform , particularly if the “person” they are communicating with wants to move the conversation to a platform like WhatsApp and then discusses crypto investments . It is essential for investors to be extremely careful and do good research before investing their money somewhere.
Source: www.bleepingcomputer.com
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