As a seasoned crypto investor with decades of experience under my belt, I can’t help but feel a profound sense of frustration and disillusionment upon hearing about Hector Gustav Gutierrez’s plight. Losing millions due to a scam, especially one as insidious as the so-called “pig butchering” scheme, is a harsh reminder of the darker side of our beloved industry.
As a U.S. based crypto investor, I recently found myself in a difficult situation after allegedly losing a significant sum of 2.1 million dollars worth of Bitcoin tokens. I strongly suspect that this loss was the result of a so-called “pig butchering” scheme, which appears to have been masterminded by an organized crime group operating out of Southeast Asia. This troubling incident serves as a stark reminder of the potential risks associated with investing in digital assets, and underscores the need for increased vigilance and due diligence when navigating this rapidly evolving landscape.
On October 3rd, Hector Gustav Gutierrez has initiated a lawsuit against Yan Shi Zhang, who is also known as “1”, in the California District Court due to accusations of a “pig butchering” fraud scheme. This scheme supposedly led to Gutierrez losing 33 Bitcoin (approximately $2.1 million USD).
Lawyer Kiley Grombacher, speaking on behalf of client Gutierrez, clarified that his client unwittingly became entangled in a deceptive hog farming scheme, which involved questionable cryptocurrency investments, allegedly orchestrated from Southeast Asia.
It is said that the criminal organization supposedly created deceptive online platforms mimicking legitimate cryptocurrency trading platforms. These fraudsters then employed these sites to attract unsuspecting victims, simulate trades, and ultimately rob their victims of their digital assets stored in the actual exchanges.
In an email to crypto.news, Grombacher stated, “Many individuals have sadly depleted their life savings, including one of our clients who is now left questioning how to cover essential living costs, as he diligently saved throughout his entire career to accumulate a considerable retirement fund.
As stated by Grombacher, his client connected with Yan Shi Zhang’s niece on LinkedIn during September, 2023. Zhang subsequently pledged to instruct Grombacher on the art of flourishing in the field of cryptocurrency trading.
According to Gutierrez’s account, Zhang asserted connections to a financial company that collaborates with Binance, backing up this claim by presenting evidence of profitable cryptocurrency trades he had made himself.
According to Grombacher’s assertion, it was Zhang who persuaded Gutierrez to register with the supposedly U.S.-based cryptocurrency exchange Kraken. However, unbeknownst to Zhang, the site they were led to was a false one.
In the end, Gutierrez resorted to spending his accumulated life savings and pension money to purchase Bitcoin. Unfortunately, he made this transaction on a questionable platform where he later exchanged his Bitcoins for Tether(USDT). This unfortunate decision led to a loss of approximately 33 Bitcoins or a staggering $2.1 million in U.S. dollars.
“It’s absolutely sickening that this kind of scam had such global reach,” said Grombacher.
Based on an FBI report published on September 9, it was revealed that the Federal Bureau of Investigation’s Internet Crime Complaint Center received over 69,000 complaints related to financial fraud using cryptocurrencies in 2023. The investigation further uncovered that U.S. citizens collectively lost approximately $5.6 billion due to crypto scams during the same year.
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2024-10-03 10:04