FBI Recovers $5 Million From Pig Butchering Crypto Scam

Authorities in North Carolina have seized nearly $5 million in cryptocurrency linked to an investment fraud scheme. The scheme, known as “pig butchering,” involved criminals creating fake romantic relationships to deceive victims into investing in fraudulent cryptocurrency platforms. Victims lost their life savings, with one losing an entire retirement account.

$5 Million in Cryptocurrency Seized in Raleigh Investment Fraud Scheme

The U.S. Attorney’s Office for the Eastern District of North Carolina announced on Thursday the seizure of nearly $5 million in cryptocurrency tied to investment fraud in Raleigh.

Authorities seized tether, a cryptocurrency pegged to the U.S. dollar, which was linked to a complex scheme where criminals laundered proceeds from victims of “pig butchering” scams. “Americans are losing their life’s savings to investment frauds as funds are being rapidly transferred to cryptocurrency accounts overseas,” U.S. Attorney Michael Easley said, adding:

In this case, one victim lost his entire individual retirement account to a scam. We are clawing back every dollar we can, even when criminals are located abroad.

In these scams, perpetrators establish fake romantic relationships with victims to gain their trust and eventually persuade them to invest in fraudulent cryptocurrency platforms that mimic legitimate ones. These platforms show fictitious profits to encourage further investments. Victims are unable to withdraw their funds and are often met with demands for additional payments under the guise of taxes or penalties.

FBI agents were able to trace and recover some of these funds despite the criminals’ efforts to hide the money through multiple cryptocurrency wallets.

FBI Charlotte Special Agent in Charge Robert M. DeWitt commented:

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.

What do you think about the pig butchering scam and the FBI’s efforts to recover funds for victims? Let us know in the comments section below. #Write2Earn