<p>The United States government has taken control of digital currency valued at approximately half a million dollars from an account linked to a Chinese individual implicated in a Reuters investigation into a crypto-investment fraud originating from Southeast Asia.</p><h2 id="header-0">‘Pig butchering’</h2><p><a href="https://www.reuters.com/technology/cybersecurity/us-seizes-crypto-linked-southeast-asian-investment-scam-2023-12-12/" rel="noopener noreferrer nofollow">According</a> to Reuters, U.S. officials have disclosed that the seized assets are connected to a crypto-investment scam known as “pig butchering,” where fraudsters manipulate unsuspecting individuals they encounter online, convincing them to invest in fraudulent crypto schemes.</p><p>The unsuspecting scam victim (the pig) is conned by scammers into handing over money with the promise of an outsized return. Once funds have been handed over, the vast majority of victims are unable to recover their money.</p><p>According to a document filed by U.S. authorities in federal court in Massachusetts, the U.S. Secret Service confiscated the crypto in June from an account registered to Wang Yicheng. At the time of the seizure, the digital currency was valued at around $500,000. The funds were traced back to a victim in Massachusetts who had initially fallen prey to the scam.</p><p>In a recent Reuters <a href="https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/pig-butchering-scams/" rel="noopener noreferrer nofollow">article</a>, Wang was identified as a businessman who cultivated relationships with members of Thailand’s law enforcement and political elite while serving as the vice president of a Chinese trade group based in Bangkok. The report outlined that a crypto account in Wang’s name had received over $90 million in recent years, with at least $9.1 million linked to a crypto wallet associated with pig-butchering scams, as reported by U.S. blockchain analysis firm TRM Labs.</p><h2 id="header-1">Multi-million dollar scams</h2><p>One case highlighted in the report involved a California man who was scammed out of approximately $2.7 million, funds that were channeled into the account in Wang’s name. Another example cited in the U.S. court filing detailed a resident of Cambridge, Massachusetts, who was allegedly defrauded of about $478,000 worth of crypto, which ended up in two crypto accounts, one of which belonged to Wang.</p><p>The U.S. court filing, part of a civil forfeiture action, seeks court approval to take possession of assets linked to the alleged crime. While no criminal charges have been filed, Acting U.S. Attorney Joshua Levy emphasized the use of civil forfeitures to recover funds stolen through crypto fraud schemes, highlighting law enforcement’s adaptability in the face of cryptocurrency transactions’ seemingly elusive nature.</p><h2 id="header-2">Crypto scammers sanctioned</h2><p>In a related development, authorities in the United Kingdom <a href="https://www.gov.uk/government/news/uk-and-allies-sanction-human-rights-abusers" rel="noopener noreferrer nofollow">reported</a> on Friday that individuals operating pig butchering crypto scams in Myanmar, Cambodia and Laos had been sanctioned, in a move coordinated with their counterparts in the U.S. and Canada, alongside the United Nations Human Rights Organization.</p><p>Many of these cases are understood to involve human trafficking, where individuals are illegally detained and forced to work on pig butchering crypto scams.</p>

U.S. authorities seize crypto tied to Asian ‘pig butchering’ scam

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