Federal authorities in North Carolina recovered the stolen crypto. The FBI traced the funds to various crypto wallets used in the scheme. The Justice Department identified Tether's assistance in the case.
Federal authorities in North Carolina have seized nearly $5 million worth of Tether linked to a “pig butcher” investment fraud scam.
The US Attorney for the Eastern District of North Carolina said in a release Funds have been traced to crypto addresses associated with the laundering of proceeds of crime stolen from victims of such crimes.
“As criminal actors evolve in the world of cyber-enabled fraud, so must the FBI and its law enforcement partners,” said FBI Charlotte Special Agent in Charge Robert M. DeWitt. “This cryptocurrency seizure serves as an example of how the FBI can adapt to the changing criminal landscape and fight for victims of cyber-enabled fraud schemes.”
The court filed that the criminals recruited the victims under the guise of romantic relationships to build their trust. Once the relationships are established, the scammers pretend they have a technique to make big profits in crypto trading and introduce their victims to fictitious crypto trading platforms.
Fake investment platforms present a fictitious investment portfolio with large returns, designed to entice victims to invest in more crypto.
When victims tried to withdraw funds, they were unable to do so and were given excuses, including saying they must pay tax or penalties to release their funds – a technique used to collect more money.
In this case, agents and analysts from the FBI were able to trace funds into and through various crypto wallets used in the fraud and money-laundering scheme, some of which still contained large amounts of funds, which were seized.
“Americans are losing their life savings to investment fraud as funds are rapidly transferred to cryptocurrency accounts overseas,” said US Attorney Michael Easley.
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He said: “In this case a victim lost his entire personal superannuation account to a scam. Even if the perpetrators are overseas, we're clawing back every dollar we can.
The Justice Department recognized Tether for its assistance in the case.
Related TopicsPig Butcher Scam
