Overview
A recent investigation by authorities in Brooklyn has uncovered a sophisticated crypto scam known as ‘pig butchering’, resulting in significant financial losses for victims. This scam, characterized by its deceptive tactics, has affected individuals in various states across the US.
What is ‘Pig Butchering’?
The ‘pig butchering’ scam involves perpetrators engaging victims in online conversations, gaining their trust, and persuading them to invest in fake cryptocurrency schemes. Victims, often targeted through random messages on platforms like dating sites and WhatsApp, are promised high returns on their investments. However, when they try to withdraw their funds, they face obstacles that lead to complete loss.
Brooklyn Victims’ Ordeal
Victims in Brooklyn have reported losses totaling $5 million due to the ‘pig butchering’ scam. One victim, a 51-year-old woman, shared her experience of falling for the scam after joining online chat groups discussing crypto investments. She made significant deposits through an app, believing her investment had grown substantially. However, her attempts to withdraw funds were met with demands for additional payments, resulting in the loss of her entire investment.
Official Response
Brooklyn District Attorney Eric Gonzalez emphasized the importance of public awareness and education to combat such fraudulent activities. Authorities have seized multiple web domains associated with the scam to disrupt its operations and prevent further victimization. Gonzalez warned against unrealistic investment promises, highlighting their deceptive nature.
Investigations have revealed that the scam extends beyond Brooklyn, with victims identified in states like California, Pennsylvania, and Illinois. The scam particularly targeted Chinese and Russian communities in Brooklyn, with funds traced through various crypto addresses and potentially cashed out in China.
