U.S. authorities are set to return $8.2 million in seized cryptocurrency to victims of a sophisticated scam involving fraudulent messages and fake investment platforms. The scheme, commonly referred to as a “pig butchering” scam, involved scammers sending unsolicited “wrong number” text messages to random individuals. Once the recipient responded, the scammers engaged them in conversation, gradually building trust and eventually convincing them to invest in fraudulent cryptocurrency schemes.
The Federal Bureau of Investigation (FBI) identified 33 victims across several states, with total losses amounting to approximately $4.9 million. Investigations revealed that the scammers guided victims to open legitimate cryptocurrency accounts, such as those on platforms like Crypto.com or Coinbase. Victims were then directed to transfer their funds to fake investment platforms controlled by the scammers, under the guise of promising lucrative returns.
In one notable case, a woman from Lake County, Ohio, lost her entire life savings of $663,000. After she was unable to send more funds, the fraudsters allegedly threatened harm to her friends and family unless she complied with their demands.
Through meticulous blockchain analysis, investigators traced the stolen funds, which had been converted into Tether (USDT) and transferred to three specific cryptocurrency addresses. Following the execution of a federal seizure warrant, Tether froze the funds and transferred them to a law-enforcement-controlled wallet. A civil forfeiture complaint has been filed in the Ohio District Court to authorize the return of these funds to the identified victims.
This case underscores the importance of vigilance when engaging with unsolicited communications, especially those involving investment opportunities. Authorities recommend exercising caution, verifying the legitimacy of investment platforms, and consulting with licensed financial advisors before making significant financial decisions.
