Pig butchering or slaughtering has become a popular scam method utilized by hackers within the crypto ecosystem.
Cryptocurrency exchange Binance announced that it supported the Federal Bureau of Investigation (FBI) in San Diego to investigate a “pig butchering” scam.
Binance Role in Busting the Pig Butchering Scam
According to Binance, its Investigations and Case teams participated in the investigation, analysis and seizure of the scam. At the end of the day, their collaborative effort with the authorities led to the uncovering of leads and seizure of $2.5 million victims funds. The seized fund which is precisely 2,546,415.01 USDT Coin (USDT), was seized from two accounts controlled by a perpetrator in Thailand.
Pig butchering or slaughtering has become a popular scam method utilized by hackers within the crypto ecosystem. As described by the United States Department of Justice, the scammers usually rely on fraudulent and manipulative tactics to obtain funds from victims. They first establish a level of trust with a victim via online communications.
When it’s finally time to strike, they entice the victim into investing in a fraudulent cryptocurrency scheme. The scammers would usually request for additional payments before the victim realizes that they have been defrauded. This pig butchering is also known as Romance Scam where individuals skillfully weave a web of deception, masquerading as someone’s Mr. or Miss Perfect in order to exploit the emotions of their targeted victim.
These scammers have mastered the art of manipulating and constantly assuring their victims that they seek the same kind of loving, meaningful relationship they’re so desperately longing for. Once their victims let their guards down, the romance scammers use many different tactics to trick their victims into handing over large amounts of money.
Frequently, victims are tricked into investing in a lucrative business. In an attempt to authenticate this so-called investment, the scammers advise their victims to plunge on a small amount. Initially, they allow their victims to make small withdrawals of their “profits” to build confidence that they’re offering a legitimate investment. They become unable to make withdrawals after investing large sums.
US DoJ Files Civil Forfeiture Action in Pig Butchering Case
Meanwhile, the United States Attorney’s Office for the District of Columbia has filed a civil forfeiture action to recover the seized cryptocurrency. This civil forfeiture makes it possible for the US authorities to seize assets from fugitives and perpetrators abroad. It is a way of depriving criminals of property used in or acquired through their illegal activities. By taking this action, the government hopes that it is able to punish and deter criminal activity.
Additionally, it promotes and enhances cooperation among federal, state, local, tribal, and foreign law enforcement agencies like in the case of Binance and the FBI pig butchering crime bust. When these assets are recovered they are sometimes used to compensate victims when authorized under federal law.
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