The Justice Department revealed on Wednesday that it has executed the largest seizure of cryptocurrency ever linked to what’s referred to as pig breeding fraud.
A civil forfeiture complaint was filed by the U.S. Attorney’s Office in the District Court for the District of Columbia, involving the seizure of over $225.3 million in cryptocurrency. Federal prosecutors allege these funds are connected to an intricate money laundering operation designed to obscure the origins of money obtained through fraudulent means.
The complaints indicate that the FBI and Secret Service leveraged blockchain analysis and various investigative methods to affirm that the seized funds were tied to illicit activities.
“This seizure of $225.3 million related to cryptocurrency investment fraud represents the largest operation in this domain by the US Secret Service,” noted Sean Brad Street, a special agent from the San Francisco Field Office of the Secret Service, in a statement.
“These fraud schemes establish trust and often lead to severe financial hardships for victims. The collaboration between the Secret Service, the FBI, and private sector partners has been crucial in identifying illegal transactions, safeguarding victims, and recovering these funds for rightful owners,” Brad Street added.
A significant portion of the illicit funds was derived from cryptocurrency trust scams commonly dubbed “slaughter of pigs.” According to the complaint, this term describes a scheme where victims are “fattened up before the slaughter.”
These scams typically revolve around deceitful romantic interactions, wherein the fraudster earns the victim’s trust, ultimately leading to financial exploitation.
The process often unfolds in stages. Initially, the scammer will reach out to the victim, gradually building a rapport before persuading them to transfer money. Once suspicion arises on the victim’s part, the perpetrator quickly cuts off communication.
The DOJ has identified over 400 potential victims globally, including several individuals in the U.S. who have verified their financial losses due to these scams.
“Today’s civil forfeiture actions are just the latest initiative by the department aimed at shielding Americans from fraudsters who target them through cryptocurrency. And this certainly won’t be the last,” a spokesperson noted.
