US Authorities Crack Down on Crypto Fraud: $500,000 Seized in 'Pig Butchering' Scheme. đšđł
In a recent move against crypto fraud, US authorities have seized approximately $500,000 in digital currency linked to a Chinese individual involved in a deceptive crypto-investment scheme known as "pig butchering." This scheme employs manipulative tactics, enticing individuals to invest in fake cryptocurrency ventures through online interactions.
The US Secret Service took action in June, seizing the digital currency from an account registered under the name Wang Yicheng, with funds traced back to a victim in Massachusetts. Wang's ties to influential figures in Thailand's law and politics, developed during his time working for a Chinese trade group in Bangkok, played a pivotal role in prompting US authorities to act.
A blockchain investigation revealed that Wang's crypto account had earned over $90 million in recent years, with $9.1 million identified as proceeds from scams like pig butchering. Formerly associated with the Thai-Asia Economic Exchange Trade Association, Wang has since been disassociated from the group, emphasizing their commitment to rules and distancing from illegal activities.
The court filing represents a civil forfeiture action, signaling the government's intent to seize assets linked to suspected criminal activities. Despite the significant seizure, no criminal charges have been filed as of now, according to the US Attorneyâs Office in Massachusetts.
The US government's crypto holdings, around 200,000 Bitcoins worth $5 billion, stem from law enforcement seizures tied to criminal activities. These actions boost investor confidence, signaling a commitment to combating scams for a more stable crypto market.
Increasing regulatory efforts raise concerns about privacy, government control, and innovation in the crypto industry. Balancing crackdowns on fraudulent activities with the need to foster innovation poses a challenge.
