Feds Snag $225M in Crypto: Largest Takedown Yet of 'Pig Butchering' Scammers
Federal agents have seized the largest amount of cryptocurrency ever related to "pig butchering" scams, where victims were tricked into fake online relationships.
The Department of Justice announced the seizure of $225.3 million in crypto from the global "confidence scam" on Wednesday, June 18. The scam is also known as "pig butchering" since it uses tactics used to "fatten up" victims before draining their savings.
Scammers relied on false identities through online messaging to gain trust and enter fake relationships before pushing fraudulent investments.
"These scams prey on trust, often resulting in extreme financial hardship for the victims," said Special Agent in Charge Shawn Bradstreet for the Secret Service's office in San Francisco. "The U.S. Secret Service, FBI, and our private partners worked diligently to trace these illicit transactions, identify victims and seize these funds so that they can eventually be returned to their rightful owners."
Federal prosecutors say more than 430 victims worldwide lost funds, including dozens across the US, with total losses in the millions.
"These schemes harm American victims, costing them billions of dollars every year," said Matthew Galeotti, head of the DOJ's criminal division. "Our investigators and prosecutors are relentlessly pursuing these scammers and their ill-gotten gains, and we will not stop until we have dismantled these criminal organizations."
Investigators say the criminals laundered the stolen funds through hundreds of thousands of blockchain transactions. They used numerous crypto wallets and accounts to cover their tracks, making it harder to trace the stolen money.
The FBI and Secret Service led the investigation with help from Tether, a stablecoin company that assisted in identifying and freezing the funds.
"Cryptocurrency investment schemes can have devastating and long-lasting consequences for victims, far beyond just financial losses," said Special Agent in Charge Sanjay Virmani from the FBI's field office in San Francisco Field Office. "The FBI continues to aggressively pursue the criminals behind these heartless frauds, working alongside our federal partners and the private sector to disrupt malicious networks and recover funds for those targeted."
According to the FBI, Americans lost more than $5.8 billion in crypto to "pig butchering" scammers in 2024.
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