The U.S. Secret Service has launched an international initiative aimed at combating the surge in cryptocurrency scams, highlighted by the historic seizure of $225 million linked to fraudulent investment schemes.
What is 'Pig Butchering' Fraud?
‘Pig butchering’ scams start with scammers establishing fake relationships with victims, gradually gaining their trust before convincing them to invest in fraudulent platforms. Victims initially see small returns, which encourages them to invest more, often borrowing funds, only to have their investments vanish when the scammers disappear.
International Cooperation in Investigations
The Secret Service’s Global Investigative Operations Center is collaborating closely with law enforcement partners in over 60 countries, including training sessions in Bermuda to enhance the detection and disruption of such scams. Investigators employ advanced blockchain analytics, domain tracing, and open-source intelligence.
Protecting Investors from Fraud
U.S. Attorney Jeanine Ferris Pirro emphasized the commitment to recovering stolen assets for victims, while the Secret Service collaborates with private sector partners, including cryptocurrency firms, to freeze illicit wallets linked to these scams.
This initiative marks a pivotal moment in the fight against crypto-related fraud, demonstrating the effectiveness of international collaboration and technological expertise in reclaiming illicit funds and protecting investors.
