THE FBI has seized $2.5 million in cryptocurrency linked to a pig-butchering scam based in Thailand, The Pattaya News can reveal.
This development marks a substantial effort by U.S. authorities to combat the rising tide of crypto-related crimes.
The U.S. Attorney’s Office has initiated a civil forfeiture process to reclaim the seized cryptocurrency.
According to recent reports, the FBI tracked down a scammer operating from Thailand who had control over two cryptocurrency accounts holding Tether (USDT). The investigation led to the seizure of these assets with assistance from Thai police authorities.
Following the successful operation, a U.S. Attorney from the District of Columbia announced the steps being taken to reclaim the seized assets. The scam, known as “pig butchering,” was specifically targeting American citizens. Under U.S. law, civil forfeiture allows the government to seize assets obtained through criminal activities, even if the perpetrators are based overseas.
‘Pig butchering’ is a term borrowed from the traditional method of fattening pigs before slaughter. In the context of cryptocurrency, it describes a scam where perpetrators spend weeks or even months building a relationship with their victims to gain their trust and encourage them to make significant investments.
The scam typically begins with the initial contact, where scammers reach out to potential victims via social media platforms, dating apps, or messaging services. They present themselves as friendly and trustworthy individuals, often posing as successful investors or professionals. Over time, the scammer nurtures a seemingly genuine relationship with the victim, sharing personal stories, engaging in frequent communication, and establishing a sense of intimacy and trust.
With trust firmly established, the scammer introduces the idea of investing in cryptocurrency. They may claim to have made substantial profits themselves and offer to help the victim achieve similar returns. The victim is often encouraged to start with a small investment, which the scammer ensures yields impressive returns. This fabricated success is designed to make the investment appear legitimate and lucrative.
Buoyed by the initial success, the victim is persuaded to invest larger sums of money, with promises of even greater returns. Scammers may provide fake websites or apps showing inflated account balances to bolster their credibility. However, when the victim attempts to withdraw their funds or profits, they encounter various obstacles. The scammer may demand additional fees or taxes, which are merely tactics to extract more money.
Ultimately, the scammer vanishes, taking the victim’s funds with them. The victim is left with significant financial losses and no recourse for recovery.
The seized cryptocurrency was held in two accounts on the Binance platform. U.S. Attorney Matthew M. Graves and Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office, made a public statement regarding the seizure.
“Our office will find and hold accountable criminal organisations – whether they operate within the United States or outside of it – that use fraudulent investment schemes like ‘pig butchering’ to defraud victims in the U.S.,” Graves stated.
He further emphasised, “This forfeiture action demonstrates that scammers cannot hide their illegal activity by using cryptocurrency and engaging in complicated transactions: we will find them, seize their illegal proceeds, and get money back to the victims.”
The use of Tether’s USDT has been highlighted by U.S. authorities and even the United Nations as a prevalent tool for criminal activities. Early this year, investigations revealed that USDT was the most widely used token in such operations, particularly in Southeast Asia.
