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The United States Secret Service has announced its largest cryptocurrency seizure linked to an extensive scam network that used deceptive investment schemes to defraud hundreds of victims.
Some shit you should know before you read: If you’re unaware, a “pig-butchering” scam is a type of cryptocurrency fraud that exploits victims emotionally and financially. The term originates from the Chinese phrase “shā zhū pán,” which refers to fattening a pig before slaughtering it (similar to how scammers groom victims). These schemes typically begin with contact via dating apps or social media, where the fraudster pretends to have a romantic interest in the victim. Over time, the scammer builds trust with the target through consistent communication, often spinning stories of financial success through crypto investments. Once the victim is emotionally invested, the fraudster introduces them to what appears to be a legitimate crypto trading platform, which is actually controlled by a criminal network. Victims are encouraged to deposit increasing amounts of money, and early “returns” are faked to reinforce the illusion of legitimacy. Eventually, the platform and scammer become unresponsive, leaving the victim with significant financial losses.
What’s going on now: In an announcement, the DOJ confirmed it seized over $225.3 million in cryptocurrency tied to a massive global scam network that defrauded victims through “pig-butchering” investment schemes. According to the DOJ, victims were lured into sending funds to what they believed were legitimate opportunities, only to have their money funneled through complex blockchain gimmicks to obscure its origin and destination.
According to officials, the scam network had links to more than 400 suspected victims worldwide, with dozens located in the United States alone. The forfeiture complaint alleges that these criminals were coordinated, combining emotional manipulation with high-tech financial obfuscation to steal and launder millions.
In a statement, Special Agent in Charge Shawn Bradstreet of the US Secret Service said, “These scams prey on trust, often resulting in extreme financial hardship for the victims. The USSS, FBI, and our private partners worked diligently to trace these illicit transactions, identify victims and seize these funds so that they can eventually be returned to their rightful owners.”
