The Department of Justice (DOJ) announced the largest-ever seizure of cryptocurrency linked to global “pig butchering” scams on Wednesday, marking a major step in combating crypto fraud.
The seizure involved over $225 million in cryptocurrency connected to a sprawling network of fraudulent investment platforms.
Federal prosecutors filed a civil forfeiture action targeting the cryptocurrency assets, which were traced back to a sophisticated criminal operation.
Victims were deceived into believing they were investing in legitimate cryptocurrency ventures, only to have their money stolen by overseas criminal groups.
“This seizure of $225.3 million in funds linked to cryptocurrency investment scams marks the largest cryptocurrency seizure in U.S. Secret Service history,” said Shawn Bradstreet, special agent in charge of the U.S. Secret Service’s San Francisco Field Office.
The network behind the scam is believed to have defrauded at least 400 victims worldwide, including dozens of Americans.
According to FBI data, cryptocurrency fraud led to more than $5.8 billion in reported losses last year, highlighting the growing scale of such crimes.
The funds seized in this case are currently undergoing forfeiture proceedings, which aim to ultimately return the stolen money to victims.
The investigation was carried out by the U.S. Secret Service and the FBI, who used blockchain analysis and other forensic tools to trace the stolen assets, per CNBC.
The DOJ also credited Tether, the world’s largest stablecoin issuer, for its cooperation and assistance in the probe. Tether’s involvement was crucial in tracking the flow of funds through complex cryptocurrency transactions.
According to the complaint filed by prosecutors, the funds were tied to theft and money laundering involving cryptocurrency investment fraud schemes. These schemes are commonly referred to as “confidence scams,” where victims are tricked through promises of high returns.
A notable aspect of these scams is their use of romance or emotional manipulation to build trust with victims before convincing them to invest large sums. The term “pig butchering” refers to how scammers fatten victims with false promises before ultimately stealing their assets.
The criminal network used hundreds of thousands of cryptocurrency transactions to hide the source of the stolen funds. They employed sophisticated blockchain maneuvers designed to obscure the flow and ownership of the illicit money.
The DOJ’s announcement comes amid rising concerns about the surge in “pig butchering” scams worldwide, which have grown sharply in recent years as digital currencies become more popular.
The Department urged other victims of similar cryptocurrency scams to come forward and assist in ongoing investigations. Law enforcement officials emphasized the importance of reporting such fraud to aid efforts in dismantling criminal networks.
This seizure represents a major victory for U.S. authorities in their fight against crypto-related crimes. It also highlights the increasingly complex methods used by scammers to evade detection and launder stolen funds.
As cryptocurrency continues to grow in popularity, regulators and law enforcement are stepping up efforts to curb fraud and protect investors from emerging scams.
The DOJ’s action signals a commitment to holding perpetrators accountable and recovering stolen assets for victims of cryptocurrency fraud worldwide.
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Author: Anthony Gonzalez
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