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The U.S. Attorney’s Office for the District of Columbia initiated a civil forfeiture action on Tuesday aimed at reclaiming cryptocurrency that was stolen from overseas – including $2 million in USDT – as detailed in a press release from July 17.
The U.S. Aims To Retrieve Millions Of Stolen Crypto In USDT
A “pig butchering” scheme refers to a fraudulent method where victims are enticed into making investments with scammers – usually in the form of cryptocurrency – who exploit their trust. The term for this distressing tactic draws a parallel to the abrupt theft that follows a period of trust-building experienced by unsuspecting victims, akin to fattening pigs before slaughter, “ultimately resulting in financial and emotional damage to the victim.”
The civil forfeiture action, which allows the government to confiscate illicit assets, aims to recover the multi-million dollar digital asset bounty primarily located in two accounts based in Thailand.
“Our office will locate and hold accountable criminal organizations – whether they function within the United States or beyond – that employ fraudulent investment schemes like ‘pig butchering’ to deceive victims in the U.S.,” stated U.S. Attorney Graves. “This forfeiture action illustrates that scammers cannot conceal their unlawful activities by utilizing cryptocurrency and engaging in complex transactions: we will track them down, seize their illicit gains, and return funds to the victims.”
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Pig Butchering Schemes Increasing, Officials Caution
“Pig butchering schemes” have seemingly garnered increased attention in recent months due to a rise in their prevalence, with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issuing an alert in September of the previous year regarding their significant increase.
A recent study conducted by University of Texas Professor John Griffin indicates that as much as $75 billion may have been misappropriated by individuals running these schemes over the past four years alone.
Last fall, Tether froze $225 million associated with an international human trafficking network in Southeast Asia as part of a Department of Justice investigation, marking the largest freezing of stablecoins in U.S. history.
“The speed at which malicious actors are employing intricate pig-butchering schemes to defraud innocent individuals is reprehensible,” remarked FBI Special Agent in Charge Moy. “The FBI and our law enforcement partners are continually adapting investigative methods to combat this threat and are utilizing all available resources to ensure we disrupt and dismantle the organizations responsible for these crimes.”
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