WASHINGTON –The U.S. Attorney’s Office for the District of Columbia filed a civil forfeiture action today to recover cryptocurrency seized by the FBI from perpetrators abroad. The cryptocurrency consists of proceeds from crypto confidence schemes, commonly referred to as “pig butchering,” targeting United States citizens through an investment scam. Specifically, the government seeks to forfeit 2,546,415.01 USDT Coin (USDT) seized from two accounts controlled by a perpetrator in Thailand. This cryptocurrency has a current estimated value of approximately $2,546,415.01.
U.S. Attorney Matthew M. Graves and Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office made the announcement.
“Our office will find and hold accountable criminal organizations – whether they operate within the United States or outside of if – that use fraudulent investment schemes like ‘pig butchering’ to defraud victims in the U.S.,” said U.S. Attorney Graves. “This forfeiture action demonstrates that scammers cannot hide their illegal activity by using cryptocurrency and engaging in complicated transactions: we will find them, seize their illegal proceeds, and get money back to the victims.”
“The rate at which bad actors are using elaborate pig-butchering scams to defraud innocent people is despicable,” said FBI Special Agent in Charge Moy. “The FBI and our law enforcement partners continue to evolve investigative techniques to thwart the progression of this threat and use all available resources to ensure we disrupt and dismantle organizations responsible for contributing to these crimes.”
In a pig-butchering scheme, scammers obtain funds from victims using fraudulent and manipulative tactics. The scammer establishes a level of trust with a victim in online communications and then entices the victim into investing in a fraudulent cryptocurrency scheme. Often the victim is enticed to make additional payments before realizing they are a victim of fraud. The “butchering” or “slaughtering” of the victim occurs once the victim’s assets, or funds, are stolen by the criminal, or criminals, ultimately causing the victim financial and emotional harm.
Civil forfeiture allows the United States to seize assets from fugitives and perpetrators abroad. In this case and others, the Department of Justice uses asset forfeiture to punish and deter criminal activity by depriving criminals of property used in or acquired through illegal activities; to promote and enhance cooperation among federal, state, local, tribal, and foreign law enforcement agencies; and to recover assets that may be used to compensate victims when authorized under federal law. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims. The United States is committed to seizing assets from perpetrators at home and abroad, to holding criminals accountable to the fullest extent of the law, and to making victims whole.
Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams, and “pig butchering” fraud scams – should contact the FBI’s Internet Crime Complaint Center at https://www.ic3.gov.
The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Rick Blaylock, Jr. of the United States Attorney’s Office for the District of Columbia along with Trial Attorneys Jonas Lerman and Stefanie Schwartz of the Department of Justice Criminal Division Computer Crime & Intellectual Property Section’s National Cryptocurrency Enforcement Team. Paralegal Gina Torres is providing valuable assistance. FBI Boston, FBI San Diego, and FBI Bangkok with cooperation from the Royal Thai Police, are assisting with the case.
The details contained in the civil forfeiture complaint are allegations, and the United States of America proudly bears the burden of proof.
