The United States has initiated a forfeiture complaint to seize nearly $200,000 worth of USDT held on Binance connected to a $1.1 million pig-butchering scam. The funds are suspected to be proceeds from wire fraud, money laundering, and other related crimes. The scams involved two separate incidents where an anonymous victim fell victim to romantic relationships that turned out to be fraudulent schemes.
In the first scam, the victim was duped by a scammer named Eva Markus who posed as an engineering consultant working on a mining project in Turkey. Markus led the victim to believe she was a diamond mine owner and needed funds to hire an attorney to return to America. The victim transferred over $400,000 as a result of this deception. In a second scam, the victim was convinced by someone named Lisa Warren on Facebook, who claimed to be a crypto investor, to invest $55,000 in Bitcoin. Eventually, the victim invested approximately $600,000 in crypto after being convinced to sell their home and invest the proceeds.
After only receiving $15,000 back, the victim realized they had fallen for a scam and reported the incidents to the police. The FBI traced some of the fraudulent transactions to a Binance account under the name of Izuchukwu Henry Okolo, who converted the Bitcoin to USDT. Binance froze the funds and alerted the FBI, leading to their seizure by the United States Marshals Service.
Romance scams, also known as pig butchering scams, involve fraudsters befriending victims under the guise of romantic interest and then persuading them to make large investments in fake schemes. Once the funds are transferred, the scammers disappear with the money, leaving the victims in financial ruin. The FTC has advised Americans to be cautious about online romantic relationships offering investment advice, as scammers are skilled at manipulating emotions to deceive their victims.
Nithin Kamath, the founder of Zerodha, describes pig butchering scams as a method of gaining the trust of victims through fake profiles and emotional manipulation before deceiving them into sending money for fake job opportunities and high-return investments. These scams are prevalent globally and can have devastating financial consequences for unsuspecting individuals. It is crucial for individuals to be vigilant and cautious when engaging in online relationships and investment opportunities to avoid falling victim to fraudulent schemes.
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