The US Department of Justice (DOJ) says it has seized more than $112 million worth of cryptocurrency linked to fraudulent investment schemes known as “pig slaughter.” According to court documents, the seized crypto accounts were allegedly “used to launder the proceeds of various cryptocurrency trust scams,” the Justice Department said.
$112 Million in Crypto Seized by the Justice Department
The US Department of Justice (DOJ) announced Monday that it has seized more than $112 million worth of cryptocurrency “tied to cryptocurrency investment scams.” Noting that the Phoenix Division of the Federal Bureau of Investigation (FBI) is investigating this case, the announcement details:
The seizure orders for six virtual currency accounts were authorized by judges from 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 the proceeds of various cryptocurrency trust scams,” the Justice Department said.
The ad describes “pig slaughter” schemes in which scammers often target victims through “online communications and social media platforms, dating websites, and phone calls and text messages that appear to have been poorly marked”. After gaining the trust of their victims, the scammers pitch the idea of cryptocurrency trading and persuade them to invest in crypto schemes where funds are redirected to accounts controlled by them.
Victims can see apparent profits and even withdraw some money to build trust. However, after making a large investment, they are unable to withdraw their funds. Scammers may request more money for taxes or fees, promising access to the account. The scam continues until the victim’s savings are depleted.
The Federal Bureau of Investigation (FBI) Internet Crime 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 increased by 183%, from $907 million in 2021 to $2.57 billion in 2022.
What do you think about the Department of Justice seizing cryptocurrency in a campaign against the pig slaughter scam? Let us know in the comments section.
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