Prosecutors in Brooklyn seized up to twenty domain names connected to a fraudulent technique known as ‘pig butchering,’ wherein con artists converse online with gullible victims, win their trust, and then trick them into investing in cryptocurrencies.
A minimum of $5 million was fraudulently extracted from victims residing in Brooklyn after they were duped into investing in cryptocurrency by an individual they encountered via a WhatsApp group, dating site, or arbitrary text message, according to the Brooklyn District Attorney’s Office.
$5 Million Swindled via WhatsApp, Dating Sites, and Texts
Authorities claim that when the victims attempted to withdraw substantial quantities from their accounts, they were blocked and lost their entire investment, despite the investments’ apparent high returns.
Coinformat.com and twenty other active associated domains were seized, according to the Brooklyn district attorney’s office, in the course of its investigation into the scheme. Additionally, three virtual servers that hosted those websites were seized.
It is a lucrative and expanding scheme with victims in multiple states, according to authorities. Prosecutors assert that the masterminds depend on victims of human trafficking to aid in the execution of the schemes at compounds located in Southeast Asia.
The United States Department of Justice announced last year that it had seized an estimated $112 million worth of virtual currency associated with swine butchering scams.
One affidavit submitted in support of a search warrant in Los Angeles states, “The victims in Pig Butchering schemes are referred to as ‘pigs’ by the con artists because the con artists use elaborate storylines to ‘fatten up’ the victims into believing they are in a romantic or other intimate personal relationship.”
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Brooklyn Crypto Scam
Prosecutors allege that among the victims in the Brooklyn investigation is a 51-year-old woman who suffered a $23,000 loss subsequent to her inclusion in online discussion groups devoted to the discourse of cryptocurrency investments.
After eight deposits and the installation of a Coinformat application, she estimated that her investment had increased to nearly $400,000.
Upon attempting to withdraw her initial investment, chat administrators informed her that taxation was due. In response to her complaint, she was excluded from the discussion group and her funds vanished.
According to prosecutors, her investment traversed several cryptocurrency addresses prior to being deposited into a foreign exchange account and potentially withdrawn by an individual based in China.
There are a number of indicators that the district attorney’s office has identified as potential victims of cryptocurrency scams.
A few examples are receiving a “wrong message” text message from an unfamiliar person attempting to initiate a conversation and discussing the substantial profits one has made from an investment in cryptocurrencies.
Potential victims may also be invited to participate in group discussions on platforms such as WhatsApp or Telegram, or be approached via Facebook with boasts regarding their cryptocurrency investments.
Cryptocurrency investment opportunities that appear too good to be true and recommendations from strangers should not be trusted.
They advise against installing investment applications from unverified cryptocurrency investment websites.
Those residing in New York can determine whether a cryptocurrency exchange is authorized to operate in the state by contacting the department’s hotline at 800-342-3736 or visiting the website of the Department of Financial Services.
Those who suspect they may have fallen victim to the incident are strongly encouraged to report it to IC3.gov, contact their local FBI field office, or dial 1-800-CALL-FBI.
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