Crypto: The DOJ sharpens its blade against scams

Sun 02 Oct 2022 ▪ 2:00 p.m. ▪
4
min read – by
Mikaia ANDRIAMAHAZOARIMANANA

The US state, through the Department of Justice, has struck again against crypto scammers. Indeed, he ordered the cessation of the activities of some twenty entities and individuals involved in the so-called ” pig butchering (or “pig butchering”). Also, the freezing of the accounts holding the assets of the victims was ordered.

The DOJ attacks the perpetrators of “pig butchering”

The order also freezes #cryptocurrencies belonging to victims in exchanges. #crypto #cryptocurrencies #pigbutchering. »

Last Wednesday, Kathy Jennings, Attorney General for the U.S. state of Delaware, announced an operation in favor of protecting crypto investors from “pig butchering”. Thus, the investor protection unit of the Department of Justice of this State proceeded to the issuance of a ” Summary Cease and Desist Order Against 23 Entities and Individuals Involved in a Cryptocurrency Scam Known as the “Pig Butchering Scam” “.

Mr. Jenning clarified that:

Today’s order is a first step in protecting Delaware investors from the “Pig Butchering” scam by freezing risky funds from further transfer by wrongdoers. »

Prior to the issuance of this order, several complaints were filed by Delaware residents. They would come from victims of this crypto scam who had been contacted by strangers via the Internet. Their modus operandi is as follows: they encourage their prey to invest in cryptocurrencies. Then, gradually, they encourage them to bet a lot of money while promising very high returns on investment.

Except that :

In the end, they were never able to withdraw their funds and their cryptocurrencies disappeared. This international scam is estimated to affect thousands of victims across the country, with losses running into billions of dollars. »

To succeed in this operation which will put an end to the activities of 23 companies and persons involved in this affair of ” pig slaughter », the Delaware DOJ had to call on a data analysis company.

pig butchering or butchering a pig, quesaco?

The ” pig butchering ” Where ” pig slaughter or “pig butchering” is a type of crypto scam that is growing in popularity. This name would come from the practice of scammers consisting in ” fatten » their prey before fleeing with their bitcoins or other cryptocurrencies. Hence the term “butchering”.

The success of pig slaughter would come from a long preparation of the victims before dispossessing them of their cryptocurrency assets later.

Attorney General Jennings pointed out that these “ are primed over time to make investments using cryptocurrencies, only to find out that what they thought was a safe investment was a scam. »

To note that ” butchering pigs » has some similarities with the « rug sweater “. The difference is that in this last type of crypto scam, it is the developer of the crypto project himself who takes care of the promotions on social networks. After reaching a certain degree of sweater “, this one takes to their heels with a wallet full of cryptographic assets. This is particularly the case of Ruja Ignatova.

At the moment, the Biden government seems to be very strict on the regulation of cryptocurrencies and intends to block the way to all malicious people from this sector. This order from the Delaware DOJ is a start, points out prosecutor Jennings. Let’s hope that freezing the assets of scammers will not lead to further centralization of the crypto universe.

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Mikaia ANDRIAMAHAZOARIMANANA avatar
Mikaia ANDRIAMAHAZOARIMANANA

The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy of this World, against all hope, I will say that I had something to do with it

We would love to say thanks to the writer of this write-up for this outstanding material

Crypto: The DOJ sharpens its blade against scams


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