The US authorities have seized almost $5 million worth of Tether USDT allegedly associated with “pig butchering” scams.
The Tether was stolen using cryptocurrency investment scams, and the investigation team worked with Tether for its help in transferring the assets, said the U.S. Attorney for the Eastern District of North Carolina in a statement.
“As criminal actors continue to evolve in the world of cyber-enabled fraud, the FBI and its law enforcement partners must also evolve,” said FBI agent Robert DeWitt.
“This cryptocurrency seizure serves as an example of the FBI adapting to the changing criminal landscape and fighting for victims of cyber-enabled fraud schemes,” warns DeWitt.
In June, the U.S. Federal Trade Commission (FTC) warned consumers of the rise in pig butchering scams or romance scams involving crypto investments.
Pig butchering is a term that originated in Southeast Asia and comes from the Chinese phrase Shāz Hū Pán. This catfishing-inspired scam usually involves a slow-burning long-term fraud.
What the ‘Pig Butchering’ Scam Involved?
To start with criminal’s approach and recruit victims through the pretense of a romantic relationship to develop their trust.
Pig butchering is a form of sophisticated online fraud, often targeting unsuspecting individuals through the guise of a romantic relationship.
The term “pig butchering” itself refers to the scammer’s process of “fattening up” the victim, much like a farmer would fatten a pig before slaughter, by gaining their trust.
To initiate the scam, criminals approach their victims through dating apps, social media, or even messaging platforms, pretending to be romantic partners.
Once they have built up a sense of trust and intimacy over weeks or even months, the scammer introduces the idea of a lucrative cryptocurrency investment opportunity.
The scammer then directs the victim to a fictitious crypto trading platform, often made to resemble a legitimate, well-known trading site.
Fake platforms are designed to show abnormally large returns on investment, which is meant to persuade the victim to continue investing more money.
As the fake portfolio displays increasingly impressive gains, the victim is further manipulated into believing they are on the path to substantial wealth.
However, when the victim attempts to withdraw their funds, they are unable to do so. Scammers provide a variety of excuses to justify the blocked withdrawal, often claiming that a “tax,” “penalty,” or additional fee must be paid to release the funds.
This is just another tactic to extract even more money from the victim.
Ultimately, the victim’s funds are never returned. By the time they realize they have been scammed, the criminals have often disappeared, leaving them with devastating financial losses and shattered trust.
Victims involved in any scam are encouraged to file a report with the IC3 at ic3.gov and with the FTC at www.reportfraud.ftc.gov.