- $5M in Tether Seized from Fraudsters
- Ex-Kansas Bank CEO Sentenced to Prison
- Other Potential Crypto Scam Victims
This week, US prosecutors claimed victories in two separate crypto fraud cases involving pig butchering. Funds were recovered in one, and a former bank CEO was sentenced in another.
$5M in Tether Seized from Fraudsters
On August 22, the US District Attorney's Office for the Eastern District of North Carolina announced the seizure of nearly $5 million worth of Tether belonging to a pig butchering ring. The funds were traced to crypto addresses allegedly linked to laundering proceeds stolen from crypto pig butchering scams. US Attorney Michael Easley said that Americans are losing their life savings to these scams, as funds are being rapidly transferred to crypto accounts overseas. He added, 'In this case, one victim lost his entire individual retirement account to a scam.'
Ex-Kansas Bank CEO Sentenced to Prison
On August 19, the US Attorney's Office for the District of Kansas reported that the former CEO of Heartland Tri-State Bank in Elkhart, Kansas, Shan Hanes, was sentenced to over 24 years in prison. Hanes pleaded guilty to embezzling $47.1 million from the bank through 11 wire transfers to crypto wallets between May and July 2023. He was also a victim of the pig butchering scheme, but funds taken included money from a local church, an investment club, and even his daughter's college savings account. The funds were transferred to purportedly buy more crypto as the scammers insisted they needed it to unlock his supposed returns. These actions led to the bank's failure, although it was insured by the Federal Deposit Insurance Corporation (FDIC).
Other Potential Crypto Scam Victims
On August 21, a security professional posted a warning on the X platform about another scam involving an Asian woman familiar with crypto trading. She lures victims into racking up profits on a bogus crypto platform before charging them a 15% withdrawal fee. This is just one of many examples of pig butchering scams that have infested social media and dating platforms.
US prosecutors continue their active fight against crypto fraud, protecting citizens' interests and seizing ill-gotten funds. However, users should remain vigilant and cautious to avoid falling victim to such schemes.
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