Pig Butchering Scams
• U.S. Department of Justice seized as much as $112 million in digital currency from addresses tied to pig butchering scams.
• Victims were tricked into investing their savings into phony digital schemes.
• Pig butchering scams often start with WhatsApp messages or something similar from illicit actors reaching out to potential victims.
DOJ Seizes Crypto Funds
The U.S. Department of Justice (DOJ) recently took action against pig butchering scams by seizing up to $112 million in digital currency from various addresses connected to the fraudulent activities. Judges in Arizona, Idaho, and California have issued at least six separate warrants for this purpose, indicating that many people have fallen victim to these schemes and lost a significant amount of money as a result.
How the Scam Works
The scam usually starts with an illicit actor contacting potential victims through WhatsApp or another messaging platform and gaining their trust over time before persuading them to invest in online digital currency trading platforms controlled by “friends” of the scammers. After investing, victims may start seeing profits grow before eventually being told they need to pay fees or invest more before they can take any money out – at which point it becomes clear that the scheme is fraudulent and victims are left without their funds or any profits made. This type of scam is believed to have originated in Florida back in September 2020 when it was first brought up by Chief Financial Officer Jimmy Patronis who warned consumers about its dangers and encouraged them to do research before making financial decisions involving cryptocurrency like bitcoin.
Victim Losses
At least 69 victims have been identified so far with an estimated total loss of around $33.9 million due to these fraudulent investment platforms according to court documents filed by the FBI Phoenix Division. Many other people may also have lost out on money due to such scams but have yet to be identified by authorities and added into official reports of losses caused by pig butchering activities related cryptocurrency investments.
Protect Yourself
To protect yourself from becoming a victim of such a scam, always be wary when considering any kind of investment opportunity involving digital currency trading platforms – especially those recommended by friends or acquaintances you don’t know too well – and make sure you do your own research beforehand so you understand exactly what you’re getting yourself into before handing over your hard-earned money!
