The U.S. Department of Justice has seized over $8.2 million in USDT cryptocurrency from scammers involved in “romance baiting” schemes. These scams, which previously used a term called “pig butchering,” trick victims into investing money on fake platforms by promising high returns. Once victims try to withdraw their funds, they face obstacles and realize they’ve been scammed. The FBI, through in-depth investigations, identified flawed money laundering patterns, allowing them to seize the assets for restitution to victims. With over 38 victim accounts and losses exceeding $5.2 million, this case highlights the serious risks of online investment scams and the importance of verifying investment platforms. Stay alert and never invest more than you can afford to lose.
The U.S. Department of Justice (DOJ) has taken a significant step in combating cryptocurrency fraud by seizing over $8.2 million worth of USDT (Tether) that was stolen through ‘romance baiting’ scams. This type of scam, previously known as ‘pig butchering’, involves tricking victims into investing money on fake platforms that promise enticing returns.
Victims are often led to believe they are making a profit, only to encounter problems when attempting to withdraw their funds. Ultimately, they discover that the websites they invested in were fraudulent, and their money has vanished into the hands of scammers.
According to TRM Labs, the FBI uncovered laundering patterns linked to these romance baiting operations. This allowed them to enact a dual legal forfeiture based on both wire fraud and money laundering laws. Thanks to Tether Limited, the funds were frozen and later reissued to law enforcement for restitution purposes.
Many victims are now hoping to recover their losses. The complaint filed by authorities mentions five individuals from various states, including Ohio and California, who together lost over $1.6 million. A total of 38 affected cryptocurrency accounts have reported losses exceeding $5.2 million.
The scam is believed to be associated with human trafficking groups in Cambodia and Myanmar. Attackers typically gain victims’ trust by allowing small profit withdrawals at first, only to later impose fees and even threats when the victims exhaust their funds.
One heartbreaking case mentioned involved a victim from Ohio, who lost around $663,352 in various fees and investments. After being pressured for more money, she was threatened when unable to comply.
To protect yourself from romance baiting scams, pay close attention to warning signs, and always ensure an investment platform is legitimate before proceeding. Be wary of any claims of guaranteed returns, and never invest more than you can afford to lose.
Tags: Cryptocurrency, Romance Baiting, Fraud, FBI, Tether, Scams, DOJ, Investment, Blockchain, Cybersecurity
What is the $8.2 million in crypto seizure about?
The U.S. government seized $8.2 million in cryptocurrency linked to ‘romance baiting’ scams. These scams trick people into thinking they are in a romantic relationship online to steal their money.
What are ‘romance baiting’ scams?
‘Romance baiting’ scams are fraudulent schemes where scammers pretend to be in love with someone online. They usually create fake profiles and build a relationship to eventually ask for money or gifts.
How did the government find out about these scams?
The government uses various methods to track financial activities and identify fraudulent patterns. In this case, they noticed suspicious transactions connected to online scams and took action.
What happens to the seized crypto now?
The seized cryptocurrency may be auctioned off or kept by the government as part of their efforts to combat fraud. Sometimes, funds go back to the victims of these scams, but it depends on the case.
How can people protect themselves from these scams?
To stay safe, people should be cautious when meeting someone online. Avoid sharing personal information or sending money to someone you haven’t met in person. Look out for signs of a scam, such as requests for money or stories that seem too good to be true.