The United States Department of Justice, specifically the Attorney’s Office for the District of Massachusetts, has declared its intentions to recover digital assets tied to a widely-known swine-slaughter cryptocurrency fraud. The Attorney’s Office revealed that through investigative efforts, digital currencies involved in fraudulent activities and money laundering were successfully traced to two separate accounts on Binance, where they were consequently confiscated.
Ongoing U.S. Efforts to Dismantle Swine-Slaughter Cryptocurrency Fraud
The Attorney’s Office for the District of Massachusetts made an official announcement on Tuesday, stating that a civil forfeiture proceeding has been initiated to reclaim digital currencies believed to be proceeds from a swine-slaughter fraudulent operation aimed at a resident of Massachusetts and linked to illicit money laundering activities. The details of the announcement further clarify:
The government is aiming to seize a total of 412,543.555 units of tether (USDT) and 100.896 units of Binance coin (BNB) that were secured from two distinct accounts hosted on Binance.com, a platform serving as both a cryptocurrency exchange and custodian service.
According to additional commentary from the Attorney’s Office, the aggregated value of the seized cryptocurrency is currently estimated to be approximately $434,000.
Initiated earlier this year, the investigation focused on a swine-slaughter scam that targeted a Massachusetts citizen. This type of scheme is characterized by fraudsters securing capital from victims through deceptive tactics. Scammers build rapport with their targets via online correspondence and then lure them into putting money into a sham cryptocurrency venture. Often, the unsuspecting individuals are coaxed into making further monetary contributions before becoming aware that they have been defrauded, as described by the Attorney’s Office.
Further, the announcement elaborates:
Cryptocurrencies used in the fraudulent and money-laundering activities were successfully identified and seized from two separate Binance accounts by law enforcement agencies.
The legal complaint posits that the digital assets in question can be linked directly to the proceeds of wire fraud and were used in money laundering activities. Civil forfeiture proceedings offer an avenue for third parties to stake claims on the seized assets, which must be adjudicated before the United States government can officially appropriate them and redistribute them to the defrauded victims.
Multiple American agencies have issued warnings about the rising occurrence of swine-slaughter cryptocurrency scams. The Federal Bureau of Investigation (FBI) has disseminated several advisories concerning the increased prominence and adoption of such scams nationwide.
Last September, the Delaware Department of Justice’s Investor Protection Unit implemented a cease and desist order against 23 different organizations and individuals implicated in the scam. The order also imposed a freeze on accounts purportedly holding cryptocurrencies owned by the victims. This past November, seven domain names used by a collective of swine-slaughter scammers were seized by U.S. officials. And in April of the current year, the U.S. Department of Justice confiscated digital assets valued at $112 million, which were also associated with a swine-slaughter cryptocurrency scam.
We invite your comments and experiences concerning the swine-slaughter cryptocurrency scam below.
Frequently Asked Questions (FAQs) about swine-slaughter cryptocurrency scam
What is the focus of the U.S. Attorney’s Office for the District of Massachusetts?
The focus is on recovering cryptocurrencies that are allegedly linked to a swine-slaughter cryptocurrency scam targeting a Massachusetts resident. The assets were traced to two accounts on the Binance cryptocurrency exchange.
What is the swine-slaughter cryptocurrency scam?
The swine-slaughter scam is a fraudulent scheme where perpetrators build a level of trust with victims through online communication. Subsequently, they entice the victims to invest in a bogus cryptocurrency operation, often encouraging additional payments before the victims realize they’ve been defrauded.
What type of legal action has been initiated?
The U.S. Attorney’s Office has filed a civil forfeiture action. This type of legal proceeding aims to reclaim assets believed to be the proceeds of fraudulent activity and money laundering.
Which cryptocurrencies have been seized?
The government seeks to forfeit 412,543.555 units of tether (USDT) and 100.896 units of Binance coin (BNB), which were held in two separate accounts on Binance.com.
What is the estimated value of the seized assets?
The combined estimated value of the seized cryptocurrency is approximately $434,000.
What do civil forfeiture actions allow?
Civil forfeiture actions allow third parties to stake claims on the seized assets, which must be adjudicated before the U.S. government can officially claim the property and redistribute it to the defrauded victims.
Have other U.S. agencies issued warnings about this type of scam?
Yes, multiple U.S. agencies including the Federal Bureau of Investigation (FBI) have issued advisories warning about the rising occurrence of swine-slaughter cryptocurrency scams.
Were there previous actions against this type of scam?
Yes, in September of the previous year, the Delaware Department of Justice’s Investor Protection Unit issued a cease and desist order against 23 entities and individuals involved in this scam. In November, seven domains used by swine-slaughter scammers were seized, and in April of the current year, $112 million in digital assets were confiscated.
Who are the targeted victims of this scam?
The targeted victims are generally individuals who are lured into fraudulent investment schemes. In this particular case, a Massachusetts resident was targeted.
What will happen to the seized assets?
The seized assets will go through a legal process where third parties can stake claims. Once resolved, the U.S. government aims to redistribute the assets to the defrauded victims.
More about swine-slaughter cryptocurrency scam
- U.S. Department of Justice Official Announcement
- Binance Exchange Information
- Federal Bureau of Investigation Crypto Scam Alerts
- Delaware Department of Justice’s Investor Protection Unit
- Civil Asset Forfeiture: An Overview
- What Is Tether (USDT)?
- What Is Binance Coin (BNB)?
- Understanding Money Laundering in Cryptocurrency
- Wire Fraud: An Overview