U.S. authorities have seized almost $5 million worth of Tether allegedly associated with “pig butchering” scams.
The U.S. Attorney for the Eastern District of North Carolina stated that the Tether was stolen using cryptocurrency investment schemes, and the investigation team collaborated with Tether to facilitate the transfer of the assets.
“The FBI and its law enforcement partners must also evolve as criminal actors continue to evolve in the world of cyber-enabled fraud,” stated FBI agent Robert DeWitt.
DeWitt cautions that the FBI’s adaptation to the evolving criminal landscape and its advocacy for victims of cyber-enabled fraud schemes are exemplified by this cryptocurrency seizure.
In June, the U.S. Federal Trade Commission (FTC) warned consumers about the increase in pig butchering hoaxes and romance scams involving crypto investments.
The term “pig butchering” derives from the Chinese phrase “Shāz Hū Pán” and originates in Southeast Asia. Catfishing-inspired scams typically involve a long-term, slow-burning fraud.
What is the ‘Pig Butchering’ Scam?
Initially, criminals approach and recruit victims by presenting a romantic relationship to establish their trust.
Pig butchering is a sophisticated form of online deception that frequently preys on unsuspecting individuals by posing as a romantic relationship.
The term “pig butchering” denotes the scammer’s process of “fattening up” the victim by establishing their trust, similar to how a farmer would fatten a pig before slaughter.
Criminals prey on their victims by posing as romantic partners on messaging platforms, social media, or dating applications to initiate the scam.
The fraudster introduces the concept of a lucrative cryptocurrency investment opportunity after they have established a sense of trust and intimacy over weeks or even months.
The victim is subsequently directed to a fictitious crypto trading platform frequently designed by the fraudster to resemble a legitimate, well-known trading site.
Fake platforms are intended to entice the victim to continue investing by displaying disproportionately high returns on investment.
The victim is further deceived into believing they are on the path to substantial wealth as the false portfolio exhibits increasingly impressive gains.
Nevertheless, the victim is unable to withdraw their funds. Scammers frequently assert that a “tax,” “penalty,” or “additional fee” must be paid to release the funds, providing a variety of justifications to justify the blocked withdrawal.
This is yet another method employed to extract additional funds from the victim.
In the end, the victim’s funds are never reimbursed. The perpetrators frequently vanish by the time the victims realize they have been defrauded, leaving them with severe financial losses and a shattered sense of trust.
Victims of any scheme are encouraged to submit a report to the FTC at www.reportfraud.ftc.gov and the IC3 at ic3.gov.
