The FBI’s latest operation resulted in the seizure of $6 million stolen from US citizens by a Southeast Asia-based fraud ring. Scammers caused serious losses to their victims by giving the impression that they were investing in real projects.
Warning from FBI Official
Chad Yarbrough, Deputy Director of the FBI’s Criminal Investigation Division, stated that crypto scams have devastating effects on Americans. Yarbrough stated that such scams target United States citizens and millions of dollars are lost.
“Such fraud schemes are devastating and affect thousands of Americans every day. “The FBI observed that victims lost millions of dollars and took out second and third mortgages on their homes, all motivated by hopes of finding the next big investment opportunity.”
“Pig Butchering” Scam
According to the FBI, victims were directed to fake offshore platforms after withdrawing their money from their banks and transferring it to their crypto wallets. In order to establish trust, scammers allowed limited withdrawals at the beginning of the process.
Known as “Pig Butchering,” these types of scams emerged in China in 2016 and have become widespread in Southeast Asia, especially during the COVID-19 pandemic. According to October 2023 reports, 12% of Americans stated that they had been exposed to this type of fraud. Of course, not all of these 12 percent are fooled by the cryptocurrency story.
Scammers often approach their victims through social or dating apps. After building trust for a long time and convincing his victims to invest more and more, he faces the same end as all his victims.
The increase in crypto scams in recent years requires users to always be careful. You should always be wary of people who approach you on social media and dating apps.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
