The United States has confiscated approximately half a million dollars in digital currency from an account associated with a Chinese individual implicated in a crypto-investment fraud scheme in Southeast Asia.
U.S. authorities disclosed that the fraudulent activity, identified as a "pig butchering" crypto-investment scam, involved manipulating unsuspecting individuals online to invest in deceptive cryptocurrency schemes, according to Reuters.
In June, the U.S. Secret Service seized the cryptocurrency from an account that had been set up under the name Wang Yicheng. In a Massachusetts federal court, U.S. officials put the crypto's worth at $500,000. A November 21 complaint described how the funds were tracked to a Massachusetts victim.
An image of Bitcoin and US currencies is displayed on a screen as delegates listen to a panel of speakers during the Interpol World Congress in Singapore on July 4, 2017.
Large-Scale Crypto Scam
A recent report shed light on Wang's involvement, identifying him as a businessman who cultivated relationships with members of Thailand's law enforcement and political elite.
The Reuters report disclosed that a crypto account under Wang's name had received over $90 million in recent years, with at least $9.1 million linked to a crypto wallet associated with pig-butchering scams, as reported by U.S. blockchain analysis firm TRM Labs.
The article highlighted specific cases, including a California man who fell victim to the scam, losing approximately $2.7 million. Another resident of Cambridge, Massachusetts, was allegedly defrauded of about $478,000 worth of crypto, diverted into two crypto accounts, one of which belonged to Wang.
Since 2020, Wang's account has received over $90 million, according to U.S. Secret Service Special Agent Heidi Robles' affidavit. Robles remarked that such high activity indicated control by a criminal organization, suggesting money laundering of stolen funds.
Despite attempts to seek comments from Wang, there has been no response. The head of the Thai police's Cyber Crime Investigation Bureau declined to comment on the matter.
Wang was affiliated with the Thai-Asia Economic Exchange Trade Association, a trade group that distanced itself from Wang, asserting that his business and personal affairs were unrelated to the association. The group clarified that Wang was no longer part of their organization, and they had severed contact with him.
A U.S. civil forfeiture case sought court consent to confiscate seized assets tied to the alleged violation. The case has no US criminal charges as of November.
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Acting U.S. Attorney Joshua Levy highlighted the use of civil forfeitures to recover funds stolen through crypto fraud schemes, emphasizing law enforcement's adaptability in dealing with cryptocurrency transactions.
Notably, in October, the Chinese government took action against cybercrime by arresting several fraudsters in Myanmar, aiming to curb the rising trend of online scams targeting its citizens.
Be Vigilant About Crypto Scams
According to The Hindu, here is some advice from security professionals on how to avoid falling for cryptocurrency scams:
- Avoid online giveaways, crypto "airdrops," and deals that seem too good to be true.
- Report profiles encouraging crypto investments on dating apps or social media. Be cautious of crypto scam projects advertising on reputable platforms.
- Invest in crypto assets only if you understand the technology or seek professional advice.
- Verify crypto investment websites for accuracy and contact details.
- Resolve customer service issues privately and through official channels. Avoid sharing sensitive details in exchange for cash or crypto.
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