US government attempts to seize $200k in Tether that was part of pig-butchering crypto scam

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As an analyst with a background in financial crime and fraud investigation, I find the recent seizure of $200,000 worth of USDT linked to pig-butchering scams on Binance both disturbing and concerning. The details of the two cases outlined in the court filing are alarmingly common – romantic relationships developed online, leading victims to transfer significant sums of money for supposed investments, only to have the perpetrators vanish with their funds.

A forfeiture complaint has been initiated by the United States to seize approximately $200,000 in USDT from Binance, which is believed to be connected to a pig-butchering scam worth over $1.1 million.

Two swindles involving ill-gotten funds, amounting to more than a million dollars, are connected to the case in question. These documents, submitted to the District Court of Columbia, provide these details.

Based on the evidence, it’s believed that the USDT in question may stem from crimes such as wire fraud, conspiring to commit wire fraud, money laundering, and conspiring to launder money.

The two scams

As a crypto investor, I’ve come across some harrowing experiences reading through these documents. They detail how an unidentified individual unfortunately became the victim of two pig-butchering scams between the years 2021 and 2022. The financial toll of these deceitful schemes amounted to a staggering loss of around $1.1 million.

I analyzed a case where an individual was tricked in their first encounter with a fraudster named Eva Markus. Markus used Facebook to initiate a romantic connection and also maintained a LinkedIn profile.

In the disclosed documents, I come across the information that Markus, who hails from Boston, Massachusetts, was engaged in a consulting role for an engineering project based in Turkey. It transpired during this tenure that Markus and the victim nurtured a romantic bond, with their communication primarily taking place via telephone calls and emails.

I deceitfully convinced an anonymous individual that I was the proprietor of a diamond mine. Unfortunately, I fabricated a story about an explosion at the mine and claimed I urgently required funds to hire legal representation to sort out matters back in America. Consequently, the victim unwittingly transferred over $400,000.

An unidentified person began a new romance with Lisa Warren on Facebook, which she revealed was her identity as a crypto investor. Convinced by her, this person invested a sum of $55,000 into Bitcoin (BTC).

In due course, the unfortunate individual was persuaded to dispose of their property, raking in around half a million dollars from the sale. Subsequently, this amount was transferred into cryptocurrency, amounting to approximately $600,000. However, upon receiving merely $15,000 and carrying out some investigative work, the individual came to the disheartening revelation that they had been scammed. Consequently, they filed a report with the law enforcement authorities.

Based on the court documents, a total of $587,197 in cryptocurrency, which included transaction and exchange fees, was transferred from the victim to Warren.

The FBI identified some deceitful cryptocurrency transactions that led them to a Binance account belonging to Izuchukwu Henry Okolo. In this account, Okolo exchanged the stolen Bitcoin for an equivalent of 196,721 US Dollars in USDT. Binance swiftly secured these funds and notified the FBI, enabling the law enforcement agency to seize them.

“The Defendant Property is presently under the supervision of the Federal Bureau of Investigation (FBI) and will subsequently be handed over to the United States Marshals Service in the District of Columbia.”

Romance and pig-butchering scams

On Mondays, the FTC shared guidance with Americans about what steps to take if they receive investment tips from a romantic interest online.

“The FTC cautions that while people may not suspect their online romantic connection of being fraudulent, scammers are skilled in deception.”

Romance scams, also known as “pig butchering” schemes, involve deceitful individuals posing as potential romantic partners to win over victims’ trust. The scammers then manipulate their victims into investing in fraudulent cryptocurrency deals. Ultimately, the con artists abscond with the money, leaving no trace behind.

Swindles involving pig butchers often unfold when cunning deceitters manage to win over a naive mark’s confidence and subsequently propose enticing financial opportunities requiring substantial investments. Following the mark’s transfer of significant resources, the con artists abscond with the funds, leaving their unsuspecting victim in the lurch.

As a researcher studying financial fraud, I’ve come across a deceitful scheme known as “pig butchering.” This name comes from the process of fattening a pig before slaughter. In the context of online scams, scammers employ this tactic to manipulate and defraud unsuspecting victims.

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2024-06-12 01:10