TL;DR
- The U.S. Attorney’s Office in Massachusetts has initiated legal actions to recover cryptocurrencies linked to a fraud scheme called “pig butchering.”
- The aim is to return $2.3 million in cryptocurrencies to the fraud victims.
- The scheme involves scammers gaining victims’ trust online to invest in cryptocurrencies, then disappearing with the funds, leaving victims with significant losses.
In Massachusetts, the U.S. Attorney’s Office has initiated legal actions to recover cryptocurrencies linked to a fraud scheme known as “pig butchering.” This scheme affected a Massachusetts resident and 36 others, who became victims of an online scam involving cryptocurrency investment.
The legal action, filed on March 13, aims to return $2.3 million in cryptocurrencies to the fraud victims. Among the cryptocurrencies in question are USD Coin (USDC). Tether (USDT), Ether (ETH), and Solana (SOL), which were confiscated from two Binance accounts in January following an investigation.
The “pig butchering” scheme is a tactic used by scammers to gain victims’ trust online and convince them to invest in a cryptocurrency scheme. Once victims make the investment, scammers disappear, leaving victims with significant losses.
Authorities initiated an investigation into this scheme in the spring of 2023. It was discovered that the confiscated cryptocurrencies were connected to 37 victims, including the Massachusetts resident. The main victim of the fraud was tricked into transferring $400,000 to the scammers. Who then transferred the funds to other wallets that investigators linked to 36 other victims.
Tether Collaborates with the Chicago Attorney’s Office
The action closely follows another related news about a similar scam. The U.S. Attorney’s Office in Chicago had seized $1.4 million in Tether from an unhosted wallet linked to a suspected tech support scam targeting seniors. In that case, Tether cooperated voluntarily in the asset recovery process. Reallocating the funds to alternative wallets under government supervision to restitute the victims.
These incidents highlight the risks associated with investing in this industry and the importance of surveillance and access to information to prevent such episodes. It is crucial for investors to be vigilant and take steps to protect their assets and avoid falling victim to fraudulent schemes.
