FBI Seizure: Over $6M in Crypto from SE Asia Scam Targeting US Investors

by

As a seasoned crypto investor who has navigated the tumultuous waters of this burgeoning market for years, I can’t help but feel both disheartened and enraged by the FBI’s latest seizure of over $6 million in crypto scammed from unsuspecting Americans. Having lost a substantial portion of my own hard-earned savings to such schemes, I have learned the hard way that the allure of easy profits can often mask the dangers lurking just beneath the surface.

A recent seizure carried out by the FBI led to more than $6 million in cryptocurrency being forfeited by U.S. citizens, following a fraudulent scheme that originated from Southeast Asia.

Based on an FBI statement on September 26th, these scammers managed to deceive their victims into believing they were part of genuine investment opportunities. Unfortunately, as time passed, these deals caused significant financial harm to those who participated in the transactions.

FBI’s Yarbrough: Crypto Scams ‘Devastating’ to US, Millions Lost

Chad Yarbrough, an assistant director at the FBI’s Criminal Investigative Division, emphasized to journalists that crypto fraud scams have severe consequences for American citizens. He highlighted the need for ongoing efforts to combat these schemes that target U.S. residents. Furthermore, he pointed out that this particular seizure by the FBI is one of the most significant this year.

This event showcases the escalating difficulties encountered when attempting to combat fraud associated with cryptocurrencies, as the market continues to expand on a global scale.

Yarbourgh commented in a press release:

Such strategies are extremely damaging, affecting countless American citizens daily. Unfortunately, the FBI has witnessed numerous victims losing millions of dollars, even resorting to taking out secondary and tertiary mortgages on their homes, all in pursuit of discovering that elusive lucrative investment opportunity.

Newest FBI Seizure Exposes ‘Pig Butchering’ Scam

As reported by the FBI, those who fell victim to this type of fraud were persuaded to withdraw money from their banks and transfer it into cryptocurrency wallets, eventually ending up on bogus offshore platforms. To build trust with their targets, scammers initially allowed for limited withdrawals.

Eventually, the victims found themselves completely disconnected from their accounts, resulting in them losing all of their investments. This method is often referred to as “pig butchering,” which essentially means luring and deceiving an unsuspecting individual.

Seizing assets by the FBI isn’t unheard of. They’ve pointed out that such scams are becoming increasingly prevalent in the growing cryptocurrency market. Trust-building, over time and consistently, is essential for successful asset seizures in this context.

‘Pig Butchering’ Crypto Fraud Targets 12% of US Daters

Under the alias Sha Zhu Pan, or “Pig Butchering,” refers to a long-term investment scam. In this scheme, victims are gradually and repeatedly encouraged to invest increasingly larger amounts using cryptocurrency. This process often involves building trust over time, usually on social or dating platforms, before eventually defrauding them—that is, stealing their funds once a significant investment has been made.

Starting back in China around 2016, this particular scam has been on the rise, eventually expanding across Southeast Asia, particularly during the COVID-19 crisis. Interestingly, it’s often found that those carrying out the scam are themselves former victims, coerced by criminal organizations to participate in the fraud.

In the recent years, scams have expanded significantly, as a study from October 2023 revealed that approximately 12% of American dating app users admitted experiencing fraud, contrasting with just 5% back in 2018.

Read More

2024-09-27 19:16