U.S. authorities have recently seized nearly $5 million worth of Tether in connection with "pig butchering" scams. The Tether was obtained through cryptocurrency investment scams, and the investigative team collaborated with Tether to facilitate the asset transfer, as per the U.S. Attorney for the Eastern District of North Carolina.
"As criminal actors continue to adapt in the realm of cyber-enabled fraud, the FBI and its counterparts must also evolve," stated FBI agent Robert DeWitt. DeWitt emphasized that this cryptocurrency seizure underscores the FBI's readiness to combat the evolving criminal landscape and advocate for victims of cyber-enabled fraud schemes.
Earlier this year, the U.S. Federal Trade Commission (FTC) cautioned the public about the surge in pig butchering scams, also known as romance scams involving cryptocurrency investments. Pig butchering, originating from Southeast Asia, involves a long-term fraudulent scheme that often results in substantial financial losses for victims.
What the 'Pig Butchering' Scam Involved?
Pig butchering is a sophisticated form of online fraud that typically targets unsuspecting individuals by masquerading as a romantic partner. The term "pig butchering" symbolizes the scammer's tactic of gaining the victim's trust before deceiving them.
Criminals initiate the scam by establishing a rapport with their victims over dating apps, social media platforms, or messaging services. They gradually develop intimacy and trust over a span of weeks or even months before introducing a seemingly lucrative cryptocurrency investment opportunity.
Subsequently, the scammer lures the victim to a fictitious crypto trading platform designed to mimic a legitimate trading website. The phony platform showcases extraordinarily high investment returns to entice the victim into investing additional funds.
As the victim witnesses the fabricated portfolio generating impressive gains, they are manipulated into believing they are on the brink of financial prosperity. However, when they attempt to withdraw their funds, the scammers block the withdrawal and request additional payments under deceptive pretexts such as taxes or penalties.
These demands for additional fees are simply ploys to extort more money from the victim. Ultimately, the victim never recovers their initial investment, and by the time they realize they have been duped, the fraudsters have vanished, leaving behind devastating financial consequences and shattered trust.
Individuals affected by such scams are urged to report the incidents to the Internet Crime Complaint Center (IC3) at ic3.gov and the Federal Trade Commission (FTC) at www.reportfraud.ftc.gov for appropriate action.
