The United States Department of Justice has confiscated digital assets worth in excess of $112 million related to fraudulent investment ventures known as “pig butchering.” According to court documents, the seized crypto accounts were allegedly “used to launder proceeds of various cryptocurrency confidence scams,” the Justice Department reported.
DOJ Seizes $112 Million in Crypto
The U.S. Department of Justice (DOJ) stated Monday that it has confiscated crypto worth above $112 million “associated with cryptocurrency investment scams.” Noting that the Federal Bureau of Investigation (FBI) Phoenix Division is investigating this case, the announcement details:
Seizure warrants for six virtual currency accounts were authorized by judges in the District of Arizona, the Central District of California, and the District of Idaho.
“According to court documents, the virtual currency accounts were allegedly used to launder proceeds of various cryptocurrency confidence scams,” the DOJ said.
The announcement explains “pig butchering” scams where fraudsters frequently target victims through “social networking and online communications platforms, dating websites, and phone calls and text messages that are meant to appear to have been misdialed.” After gaining the trust of their victims, scammers present the notion of cryptocurrency trading and encourage them to invest in crypto schemes where the funds are diverted to accounts controlled by them.
Victims may observe apparent gains and even withdraw some money to build trust. Nevertheless, after making a large investment, they cannot withdraw their funds. Scammers may ask for more money for taxes or fees, guaranteeing access to the account. The scam continues until the victim’s savings are depleted.
The Federal Bureau of Investigation (FBI)’s Internet Crimes Complaint Center (IC3) recently revealed that investment fraud accounted for the highest losses of any scam, totaling $3.31 billion. The agency noted that cryptocurrency investment fraud rose 183% from $907 million in 2021 to $2.57 billion in 2022.
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