US Department of Justice Seizes 7 Pig Butchering Crypto Scam Sites

The US Department of Justice has seized seven websites used by fraudsters to carry out a cryptocurrency scam known as “pig butcher”.

Pig-slaughtering is an increasingly popular trust trick that scammers use to steal cryptocurrencies. Scammers will contact potential victims via dating apps, social media websites or even random text messages.

After developing a relationship with the victims, the scammers then convince them to invest in cryptocurrency. After making a sequence of investments, the victims are then blocked by the perpetrators who get away with the stolen funds.

Losses reach $10 million, fraudulent sites seized

The U.S. Attorney’s Office for the Eastern District of Virginia reportedly seized seven domain names associated with the scam. Between May and August 2022, scammers managed to trick five victims into depositing cryptocurrency on sites they believed to be the Singapore International Monetary Exchange. The victims’ losses amounted to a total of $10 million.

Unfortunately, these domains had effectively been “spoofed” by the scammers, making them appear to be a legitimate entity. After the victims deposited their crypto through the sites, the assets were immediately transferred to various wallets controlled by the crooks.

In many cases, these sites are also sophisticated enough to allow victims to supposedly track their funds. Sites will often show victims a good return on their investment, enticing them to deposit even more crypto.

Warnings of paying income tax or additional fees would also prevent victims from trying to withdraw some of their capital.

The FBI has received more than 4,000 complaints

Pig culling began in China in 2019, but has become increasingly common in the West, according to the FBI. Much of the A$242 million lost to crypto scams in Australia this year has been due to pig butcher schemes.

Meanwhile, the Bureau’s Internet Crime Complaint Center received more than 4,300 complaints related to pork butchering programs last year. These losses amounted to more than $429 million.

Federal authorities have offered protective advice and warned potential victims to be aware of particular suspicious activity. For example, they should never send money to anyone they haven’t met in person. Even then, they must verify the identity of these people, especially if they are offering investment opportunities.

Moreover, potential victims should remain skeptical about such opportunities, especially if they claim to offer significant returns. They should also be vigilant against depositing funds on fraudulent websites or exchanges. Many of them go to great lengths to look like legitimate institutions, but often have minor deviations from the original.