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U.S. authorities have confiscated nearly $5 million in Tether purportedly linked to “pig butchering” scams.
The Tether was acquired through cryptocurrency investment frauds, and the investigative team collaborated with Tether to facilitate the asset transfer, stated the U.S. Attorney for the Eastern District of North Carolina.
“As criminal elements continue to adapt in the realm of cyber-enabled fraud, the FBI and its law enforcement allies must also adapt,” remarked FBI agent Robert DeWitt.
“This cryptocurrency seizure exemplifies the FBI’s response to the evolving criminal environment and its commitment to supporting victims of cyber-enabled fraud schemes,” cautioned DeWitt.
In June, the U.S. Federal Trade Commission (FTC) alerted consumers about the increase in pig butchering scams or romance scams involving cryptocurrency investments.
Pig butchering is a term that originated in Southeast Asia and derives from the Chinese phrase Shāz Hū Pán. This catfishing-inspired scheme typically involves a gradual, long-term deception.
What the ‘Pig Butchering’ Scam Involved?
Initially, criminals engage and recruit victims under the guise of a romantic relationship to build their trust.
Pig butchering represents a form of intricate online fraud, frequently targeting unsuspecting individuals under the pretense of a romantic connection.
The term “pig butchering” itself describes the scammer’s method of “fattening up” the victim, similar to how a farmer would prepare a pig for slaughter, by earning their trust.
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To commence the scam, criminals reach out to their victims via dating applications, social media, or even messaging services, posing as romantic partners.
After establishing a sense of trust and intimacy over weeks or even months, the scammer presents the notion of a profitable cryptocurrency investment opportunity.
The scammer then guides the victim to a fabricated crypto trading platform, often designed to mimic a legitimate, well-known trading site.
These counterfeit platforms are engineered to display unrealistically high returns on investment, aimed at convincing the victim to invest more money.
As the fraudulent portfolio showcases increasingly impressive gains, the victim is further manipulated into believing they are on the verge of significant wealth.
However, when the victim tries to withdraw their funds, they find themselves unable to do so. Scammers offer various excuses to rationalize the blocked withdrawal, frequently asserting that a “tax,” “penalty,” or additional fee must be settled to access the funds.
This is merely another strategy to extract even more money from the victim.
Ultimately, the victim’s funds are never returned. By the time they realize they have been deceived, the criminals have often vanished, leaving them with severe financial losses and broken trust.
Victims of any scam are urged to report the incident to the IC3 at ic3.gov and to the FTC at www.reportfraud.ftc.gov.
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