The United States Attorney’s Office for the District of Columbia filed a civil forfeiture action to recover over $2 million worth of cryptocurrency lost in “pig butchering” scams targeting U.S. citizens.
The action aims to obtain cryptocurrency that the FBI seized from scammers internationally. The move would secure 2,546,415.01 USDT, valued equivalently in USD, from two accounts from individuals in Thailand engaging in an investment scam, according to a Tuesday release from the Department of Justice.
“Our office will find and hold accountable criminal organizations — whether they operate within the United States or outside of if — that use fraudulent investment schemes like ‘pig butchering’ to defraud victims in the U.S.,” said U.S. Attorney Matthew Graves in a statement. “This forfeiture action demonstrates that scammers cannot hide their illegal activity by using cryptocurrency and engaging in complicated transactions: we will find them, seize their illegal proceeds, and get money back to the victims.”
A civil forfeiture allows the U.S. government to seize assets obtained through illicit activity.
Confidence scams
Pig butchering scams, also called confidence schemes, can involve perpetrators manipulating victims by gaining their trust and then convincing them to invest in fraudulent cryptocurrency endeavors. In January of this year, the United Nations pointed to USDT as a common token used in money laundering and scams, including pig butchering schemes, in Southeast Asia.
Tether, the firm overseeing the USDT stablecoin, froze $225 million worth of the asset used in an alleged pig butchering romance scam in Southeast Asia in November 2023, The Block previously reported.
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