(CTN News) – According to The Pattaya News, the FBI seized $2.5 million in bitcoin tied to a pig-butchering scheme located in Thailand.
This initiative represents a significant attempt by US authorities to combat the rising flood of cryptocurrency-related crimes.
The United States Attorney’s Office has begun a civil forfeiture proceeding to reclaim the seized cryptocurrency. According to recent reports, the FBI apprehended a scammer operating from Thailand who controlled two cryptocurrency accounts containing Tether (USDT).
The investigation resulted in the confiscation of these assets with the cooperation of Thai police authorities.
Understanding the ‘Pig-Butchering’ Scam
Following the successful operation, a United States Attorney for the District of Columbia stated the procedures being taken to recover the confiscated assets. The fraud, known as “pig butchering,” was aimed exclusively at Americans.
Under US law, civil forfeiture empowers the government to confiscate assets gained via criminal activity, even if the culprits are located abroad.
The term ‘pig butchering’ comes from the traditional process of fattening pigs before slaughter. In the context of cryptocurrencies, it refers to a fraud in which the perpetrators spend weeks or even months developing a connection with their victims in order to gain their trust and persuade them to make large investments.
The fraud usually begins with an initial contact, in which scammers contact potential victims via social networking platforms, dating apps, or messaging services.
They position themselves as approachable and trustworthy people, frequently acting as rich investors or professionals. Over time, the fraudster develops an apparently genuine relationship with the victim by sharing personal tales, communicating frequently, and creating closeness and trust.
With trust developed, the scammer introduces the concept of investing in cryptocurrencies. They may claim to have generated big gains and promise to assist the victim in achieving similar results.
The victim is frequently persuaded to start with a little investment, which the scammer promises will bring great results. The faked success is intended to make the investment appear respectable and profitable.
Encouraged by his first success, the victim is convinced to invest larger quantities of money with promises of even greater returns. Scammers may use bogus websites or applications with exaggerated account balances to boost their trustworthiness.
However, when the victim wants to withdraw their funds or gains, they face a number of barriers. The fraudster may demand additional fees or taxes, which are simply attempts to extract more money.
Finally, the fraudster vanishes, taking the victim’s money with him. The victim is left with substantial financial losses and no way to recoup.
The seized bitcoin was held in two accounts on the Binance exchange. U.S. Attorney Matthew M. Graves and Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office released a statement announcing the seizure.
Tether (USDT) Highlighted in Crypto Criminal Activities
“Our office will find and hold accountable criminal organisations – whether they operate within the United States or outside of it – that use fraudulent investment schemes like ‘pig butchering’ to defraud victims in the U.S.,” according to Graves.
He also pointed out, “This forfeiture action demonstrates that scammers cannot hide their illegal activity by using cryptocurrency and engaging in complicated transactions: we will find them, seize their illegal proceeds, and get money back to the victims.”
The use of Tether’s USDT has been recognized by US authorities and even the United Nations as a common tool for illegal activity. Early this year, studies indicated that USDT was the most popular token in such transactions, notably in Southeast Asia.
Source: News Bitcoin
