FBI Seizes $2 Million in Cryptocurrency from Thai Scammers in Major Fraud Case

FBI Seizes $2 Million in Cryptocurrency from Thai Scammers in Major Fraud Case

The United States Attorney’s Office for the District of Columbia has initiated a civil forfeiture action to reclaim over $2 million in cryptocurrency lost to “pig butchering” scams that targeted U.S. citizens.

This legal action seeks to recover cryptocurrency that the FBI has confiscated from international scammers. Specifically, it aims to secure 2,546,415.01 USDT, equivalent in USD, from two accounts held by individuals in Thailand who were involved in an investment scam, as per a Department of Justice release issued on Tuesday.

“Our office is committed to identifying and holding accountable criminal organizations, whether they operate domestically or internationally, that utilize fraudulent investment schemes such as ‘pig butchering’ to defraud U.S. victims,” stated U.S. Attorney Matthew Graves. “This forfeiture action underscores that scammers cannot conceal their illicit activities through cryptocurrency and complex transactions: we will track them down, seize their illegal proceeds, and return the funds to the victims.”

Civil forfeiture allows the U.S. government to seize assets acquired through illegal activities.

Confidence Scams

Pig butchering scams, also known as confidence schemes, involve scammers gaining the trust of their victims and then persuading them to invest in fraudulent cryptocurrency ventures. In January, the United Nations identified USDT as a commonly used token in money laundering and scams, including pig butchering schemes in Southeast Asia.

Tether, the company behind the USDT stablecoin, froze $225 million worth of assets tied to an alleged pig butchering romance scam in Southeast Asia in November 2023, according to a report by The Block.