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Delaware authorities crack down on crypto scams with pig slaughter

The Investor Protection Unit of the Delaware Department of Justice halted the operations of 23 companies and individuals involved in a cryptocurrency romance scam known as the “pig fight” scam.

A recent analysis by the Bankless Times estimates that between January 2021 and March 2022, Americans lost around $185 million as a result of such schemes.

Crypto scammers back in the spotlight

The latest destination for cryptoromance scammers to scam people is the eastern US state of Delaware. Not long ago, the Investor Protection Unit (which operates under the jurisdiction of the Delaware Department of Justice) receive Complaints from locals that they were reached by strangers who asked them to cryptocurrencies to buy for investment.

Some people bought digital assets and saw a significant return on their initial distributions. The scammers kept encouraging them to buy more, assuring that the earnings would be as good as the previous time. Needless to say, people couldn’t withdraw their funds if they wanted to cash out some winnings while their holdings were disappearing from their accounts.

Working with a data analytics firm, the Investor Protection Unit discovered 23 organizations and individuals associated with these systems and issued a summary cease-and-desist order.

Attorney General Kathy Jennings further revealed that they were behind a typical crypto-romance scam also known as “pig slaughtering”. Criminals reach out to lonely people online and lure them into a love affair. Once victims are under the spell of emotion, they are pushed to make crypto investments while evildoers “fatten” their targets before siphoning all off of them, hence the name “pig slaughter”.

“Protecting investors from online scammers is extremely important. When victims lose funds to cryptocurrency scams, including the pig slaughter scam, it can be difficult to recover those funds. Today’s order is a first step in protecting Delaware investors from the hog slaughter scam by freezing funds that are subject to further remittance by the perpetrators,” Attorney General Jennings said.

Delaware officials then gave locals some important tips to help them prevent similar attacks in the future, including being vigilant when receiving online messages from unknown individuals on dubious platforms. People should also keep in mind that there is no such thing as a “risk-free” investment and that “if something sounds too good to be true, it probably is.”

Previous similar cases

In January this year, a British national who preferred not to reveal his name Cut with almost $200,000 of his savings after a woman he texted via a dating app cheated on him.

When Jia introduced herself, she assured the man that she was a successful cryptocurrency investor with “insider knowledge.” She tricked him into believing that the only way they would build a wealthy lifestyle together was if he invested his life savings in a dubious digital asset investment.

The man ended up investing around $200,000 when he found his balance was “balanced.” He was also unable to contact Jia anymore and admitted that without his mother’s help he would have committed suicide.

Back to the US, research by the Bankless Times definitely that American residents lost approximately $185 million to romantic crypto schemes between January 2021 and March 2022.

“Victims of love scams learn the hard way that the heart isn’t that smart. Her search for love makes her easy prey for devious people who scam her of their money. They’ll set up an elaborate scam that will make their victims swoon, and by the time the victim realizes it, they’ll be several thousand dollars poor,” the analysis reads.

Source: Crypto News Deutsch

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