Four individuals, three from Southern California and one from Chicago, faced charges related to an alleged scam that defrauded victims of more than $80 million across 284 transactions, according to the United States Department of Justice on Thursday.
The DOJ stated that the accused group supposedly collaborated to create shell companies and bank accounts, engaging in laundering proceeds from cryptocurrency investment scams, known as ‘pig butchering,’ and various fraudulent activities, based on court records.
The group funneled the funds to both domestic and international financial institutions. Investigations revealed that over $20 million from victims was directly funneled into bank accounts linked to the defendants.
Operating via dating apps and social media, the alleged scammers established connections with victims, gradually earning their trust before proposing cryptocurrency-based business investments, federal prosecutors in Los Angeles stated.
After initiating contact, victims were directed to fraudulent cryptocurrency investment platforms where they were persuaded to invest. The platforms would show fake profits, prompting victims to invest more funds, but they were unable to retrieve their money, resulting in substantial losses.
The term ‘pig butchering’ signifies the process of grooming fraud victims for exploitation, derived from a foreign-language phrase describing these crimes, as per authorities’ explanations.
