Alabama Securities regulators seized more than $125,000 in crypto assets for two residents who elaborately sacrificed a “pig slaughter” fraud, which costs nearly $580,000.
The Alabama Securities Commission recovered $53,227.81 for Baldwin County residents who lost about $185,000 and $73,927.68 for victims in Etowa County.
Pig slaughter fraud has emerged as the fastest growing crypto fraud, leveraging both digital assets and the anonymity of victim sentiment through carefully organized romance schemes.
Scams are becoming increasingly sophisticated as criminals leverage Crypto’s irreversible dealings and cross-border capabilities to steal billions from unsuspecting Americans.
In the Baldwin County case, the victim met the alleged fraudsters through the Bumble Dating app.
For three months, she was convinced she would buy and forward more than $185,000 in crypto to what appears to be a legitimate trading platform. But it was actually a wallet controlled by criminals.
After being told that the investment had grown to over $443,000, when she tried to withdraw funds, she was asked to send additional codes to pay the expected tax.
The Etowa County victim encountered a scammer through WhatsApp ads and was persuaded to invest $395,310 in a fraudulent platform that falsely claimed its relationship with Charles Schwab and the SEC registration.
Financial services company Wells Fargo Advisors reported suspicious activity when the victim attempted a massive withdrawal for crypto investment.
“The ASC continues to see an increase in cryptocurrency fraud, including ‘slaughtering of pigs,” said ASC Director Amanda Sen. “Most cybercrimes occur overseas and deals occur instantly, making it almost impossible to arrest or collect funds for criminals.”
Federal authorities have stepped up enforcement on the infrastructure that enables these frauds.
In March, the US Treasury approved Philippines-based Funnull Technology Inc. and its Chinese administrator Liu Lizhi for promoting pig slaughter and other crypto fraud schemes that have confided more than $200 million Americans.
The ASC encourages immediate reporting of suspicious fraud, highlighting that delays dramatically reduce the chances of recovery.
Cypto Scams recorded at least $9.9 billion worldwide in 2024, with pig slaughter accounting for 33.2% of all fraudulent revenues, according to Chainalysis’ February Crypto Crime Report.
Pig slaughter revenues rose nearly 40% in 2024, but the number of deposits increased by 210% year-on-year, with average deposits falling by 55%, suggesting that criminals are making short drawbacks to expanding the pool of victims rather than traditional several-month-related buildings.
Edited by Stacy Elliott.
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