Friday, March 1, 2024

‘Pig butchering’: Authorities Seized $9M in Crypto During Dollar Conversion

Authorities seized about $9 million in crypto, which was earned by taking advantage of over 70 victims nationwide through alleged “pig butchering” schemes. 

A pig-butchering scam is an investment fraud that tricks people into investing their money in seemingly legitimate and lucrative enterprises.

These fraudsters prey on regular investors by fabricating websites that entice victims into believing their investments are profitable.

According to the Justice Department, the alleged companies and cryptocurrency exchanges were, in fact, non-existent trading platforms.

After tracing those victim deposits, U.S. Secret Service (USSS) agents and analysts noticed that the money was swiftly laundered through dozens of cryptocurrency addresses and exchanged for multiple different cryptocurrencies—a process known as “chain hopping.”

Free Webinar

Live API Attack Simulation Webinar

In the upcoming webinar, Karthik Krishnamoorthy, CTO and Vivek Gopalan, VP of Products at Indusface demonstrate how APIs could be hacked. The session will cover: an exploit of OWASP API Top 10 vulnerability, a brute force account take-over (ATO) attack on API, a DDoS attack on an API, how a WAAP could bolster security over an API gateway

To hide the nature, source, ownership, and management of illicit gains, these strategies are utilized to “layer” them into brand-new cryptocurrency ecosystems. 

The seized funds were connected to many victim reports filed through the Federal Trade Commission’s (FTC) Consumer Sentinel Network and the FBI’s Internet Crime Complaint Center (IC3). The proceeds were returned in the US dollar-linked stablecoin Tether.

“Silicon Valley remains one of the world’s preeminent locations for cryptocurrency firms. As such, we remain dedicated to using all tools at our disposal to bring justice to the victims of frauds and scams”, said U.S. Attorney Ismail J. Ramsey for the Northern District of California.

“Even when money and criminals are abroad, we will work with our partners to seize cyber criminals’ illegal proceeds.”

Seizure of $9M in Crypto Disrupted

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division stated this seizure should also serve as a warning to cybercriminals that, despite the cryptocurrency ecosystem’s current state appearing to be a perfect place to launder illicit gains, law enforcement will continue to build the skills necessary to track down and recover money for victims.

The department is also hopeful that the over 70 victims of this fraud series would feel some closure and justice as a result of the assets being recovered. 

The goal of the Secret Service is to safeguard the US financial system, and this seizure is a prime example of that effort.

“We remain determined and vigilant to combat cyber-enabled financial fraud,” said Special Agent in Charge Shawn Bradstreet of the USSS San Francisco Field Office.

The case is still being handled by the Department of Justice’s computer crime division, the National Cryptocurrency Enforcement Team, and assistant US attorneys Chris Kaltsas and Galen Phillips for the Northern District of California.

The Department of Justice did not mention any arrests or the cybercriminals’ identities within the organization.

Experience how StorageGuard eliminates the security blind spots in your storage systems by trying a 14-day free trial.


Latest articles

RisePro Stealer Attacks Windows Users Steals Sensitive Data

A new wave of cyber threats has emerged as the RisePro information stealer targets...

Golden Corral restaurant chain Hacked: 180,000+ Users’ Data Stolen

The Golden Corral Corporation, a popular American restaurant chain, has suffered a significant data...

CISA Warns Of Hackers Exploiting Multiple Flaws In Ivanti VPN

Threat actors target and abuse VPN flaws because VPNs are often used to secure...

BEAST AI Jailbreak Language Models Within 1 Minute With High Accuracy

Malicious hackers sometimes jailbreak language models (LMs) to exploit bugs in the systems so...

Hackers Hijack Anycubic 3D Printers to Display Warning Messages

Anycubic 3D printer owners have been caught off guard by a series of unauthorized...

RSM US Deploys Stellar Cyber Open XDR Platform to Secure Clients

Stellar Cyber, the innovator of Open XDR, today announced that RSM US – the leading provider...

Biden Crack Down Sale of Americans’ Personal Data to China & Russia

To safeguard the privacy and security of American citizens, President Joe Biden has issued...
Divya is a Senior Journalist at GBhackers covering Cyber Attacks, Threats, Breaches, Vulnerabilities and other happenings in the cyber world.

Live Account Takeover Attack Simulation

Live Account Take Over Attack

Live Webinar on How do hackers bypass 2FA ,Detecting ATO attacks, A demo of credential stuffing, brute force and session jacking-based ATO attacks, Identifying attacks with behaviour-based analysis and Building custom protection for applications and APIs.

Related Articles