The Brooklyn District Attorney’s office recently seized 21 web domains associated with fraudulent cryptocurrency investments and “pig butchering” scams. These scams involve perpetrators gaining victims’ trust through dating apps or other platforms and manipulating them into making bogus investments. District Attorney Eric Gonzalez emphasized the need for caution and diligence in avoiding falling for crypto scams that seem too good to be true. The public was urged to conduct thorough research before engaging in any investment activities and to avoid downloading apps from unverified cryptocurrency websites.
Last year, the New York Police Department received 50 complaints related to online crypto scams, but Gonzalez emphasized that this likely represents only a fraction of the actual instances, as victims often feel ashamed or are unsure of how to report such crimes. Victims who came forward from Brooklyn alone reported losses exceeding $4 million, with individuals suffering substantial financial losses, including depleting life savings or mortgaging their homes. One victim reported a loss of $22,680 after joining online chat groups discussing crypto investments, only to be scammed out of a significant amount of money when they tried to withdraw their initial investment.
During the investigation, authorities discovered that victims’ funds were funneled through multiple cryptocurrency addresses, eventually reaching an account at a foreign crypto exchange where the money was cashed out by individuals outside US jurisdiction, potentially in China. Additional victims were uncovered from California, Pennsylvania, and Illinois, collectively losing $366,665 to the same scam. Crypto romance scams have also become prevalent in the US, with victims suffering significant financial losses, including Shreya Datta, a 37-year-old tech professional from Philadelphia who faced losses mounting to $450,000. Deputy District Attorney Erin West in Santa Clara, California, revealed that they receive 5-6 emails daily from victims of pig butchering scams, with one victim losing $5 million.
The stolen funds from these scams are often funneled overseas to transnational criminal organizations in countries like Myanmar and Cambodia, with trafficked individuals used as virtual slaves to carry out the pig butchering scams. The authorities in Brooklyn are actively working to disrupt these schemes by seizing and shutting down online infrastructure associated with fraudulent cryptocurrency investments and pig butchering scams. Educating the public about the risks and warning against downloading apps from unverified cryptocurrency websites are important steps in preventing individuals from falling victim to such scams, which can result in devastating financial losses. Increasing awareness about these types of scams and encouraging victims to come forward and report their losses is crucial in combating the growing issue of crypto scams.
