Los Angeles, CA – A nationwide crypto scam has come to light, leaving victims devastated and the Department of Justice (DOJ) on the hunt for four individuals accused of masterminding the $80 million fraud. Dubbed "pig butchering," the scheme targeted unsuspecting individuals through social media and dating apps, building trust before luring them into high-yield cryptocurrency investment scams.
More Than Money Lost: The DOJ alleges the four defendants, three from Southern California and one from Chicago, not only bilked victims out of millions but also engaged in sophisticated money laundering to conceal their tracks. Shell companies and bank accounts were allegedly used to funnel victim funds, with over $20 million directly deposited into accounts linked to the defendants.
The "Pig Butchering" Process: The alleged scam followed a predictable pattern. Scammers would contact victims through social media, often pretending to be someone else, and slowly build trust. Once rapport was established, the idea of lucrative cryptocurrency investments would be introduced.
False Promises, Real Losses: Victims were then directed to fraudulent investment platforms controlled by the scammers. These platforms would falsely show significant returns on investments, further enticing victims to pour more money into the scheme. However, withdrawals were impossible, trapping victims in a cycle of increasing losses.
DOJ Cracks Down: The DOJ has now charged the four individuals with fraud and money laundering. Their actions highlight the growing prevalence of online scams targeting cryptocurrency investors, especially during the holiday season. Authorities urge caution and vigilance, reminding individuals to be wary of unsolicited investment offers, particularly those promising unrealistic returns.