Seizure of $5 Million in Cryptocurrency Linked to Pig Butchering Scam in North Carolina

Authorities in North Carolina have recovered nearly $5 million from a cryptocurrency scam known as "pig butchering," where fraudsters use fake romantic relationships to deceive victims into investing in fraudulent cryptocurrency platforms. This scam has led to victims losing their life savings, with one individual reportedly losing an entire retirement account. The FBI and the U.S. Attorney's Office are actively working to trace and recover funds from these schemes, highlighting the growing threat of crypto-enabled fraud. The stolen Tether was recovered from cryptocurrency investment scams, and the investigation team collaborated with Tether to transfer the assets, according to the U.S. Attorney for the Eastern District of North Carolina. FBI agent Robert DeWitt stated, "As criminal actors continue to evolve in the world of cyber-enabled fraud, the FBI and its law enforcement partners must also evolve. This cryptocurrency seizure serves as an example of the FBI adapting to the changing criminal landscape and fighting for victims of cyber-enabled fraud schemes."

The FBI recovered nearly $5 million in cryptocurrency linked to a "pig butchering" investment scam in North Carolina, where criminals used fake romantic relationships to defraud victims - also known as a ponzi scheme. This scam tricked individuals into investing in fraudulent crypto platforms, resulting in significant financial losses. Authorities continue to investigate and recover stolen funds. If you want to learn more about ponzi schemes you can review our investment scam repository

• Defendant: Unknown individuals involved in a pig butchering scam.
• Crime: Fraudulent cryptocurrency investment solicitation.
• Amount Defrauded: Nearly $5 million in cryptocurrency.
• Method: Fraudsters created fake romantic relationships to gain victims' trust, convincing them to invest in fraudulent cryptocurrency platforms mimicking legitimate ones. Victims were shown fake profits and encouraged to invest more, then prevented from withdrawing funds.
• Sentence: No specific sentences have been reported yet; investigation ongoing.
• Additional Penalties: None reported; investigation ongoing.
• Investigating Authorities: FBI and U.S. Attorney's Office for the Eastern District of North Carolina.
• Plea: Not applicable; no arrests or indictments reported yet.
• Prosecutor's Statement: Highlighted the loss of life savings for victims and the ongoing efforts to recover funds, even those located abroad.

The scam was identified and disrupted when authorities seized nearly $5 million in cryptocurrency in Raleigh, North Carolina. The FBI traced these funds to various cryptocurrency wallets used by the scammers to obfuscate the origins and transfer of the stolen assets. This seizure is part of an ongoing effort to combat cryptocurrency fraud schemes and recover stolen funds for victims.

In a significant move to disrupt a large-scale cryptocurrency fraud operation, authorities in North Carolina seized nearly $5 million linked to a "pig butchering" scam. This fraudulent scheme involved criminals creating fake romantic relationships to build trust with victims and persuade them to invest in sham cryptocurrency platforms. These platforms mimicked legitimate trading sites, showing fictitious profits to encourage further investments. Once invested, victims found themselves unable to withdraw funds and were often asked for additional payments under false pretenses. The FBI and the U.S. Attorney's Office have been actively tracing these funds, some of which were moved through multiple cryptocurrency wallets to obscure their origins. The recovery of these funds marks an important step in combating cyber-enabled fraud and returning assets to victims.

The FBI has recovered nearly $5 million in Tether from a Pig Butchering crypto scam. However, this amount is minor compared to the overall rise in crypto fraud cases. Scammers continue to find ways to steal from investors. Building friendships and romantic relationships has become a new tactic. One notable case involved a former bank CEO. He stole over $47 million from his bank and subsequently claimed bankruptcy.