The Brooklyn District Attorney’s office has seized 21 web domains associated with fraudulent cryptocurrency investments and “pig butchering” scams, targeting victims through dating apps and other platforms. District Attorney Eric Gonzalez emphasized the need to disrupt these schemes by shutting down their online infrastructure and educating the public about the dangers of falling for crypto investments that seem too good to be true. Victims in Brooklyn alone reported losses exceeding $4 million, with many individuals suffering substantial financial losses, including depleting their life savings or mortgaging their homes.
Last year, the New York Police Department received 50 complaints related to online crypto scams, but Gonzalez noted that this likely represents only a fraction of the actual instances due to victims feeling ashamed or unsure of how to report such crimes. One victim, a 51-year-old woman, reported a loss of $22,680 after initially seeing her account balance grow to $387,495 through deposits, only to have her money vanish after being blocked from the chat group where she was investing. Investigations revealed that victims’ funds were funneled through multiple cryptocurrency addresses, reaching accounts in foreign crypto exchanges, potentially in China, for cashing out.
Crypto romance scams have become prevalent in the US, with victims suffering significant financial losses. Shreya Datta, a 37-year-old tech professional from Philadelphia, was financially ruined after falling victim to a cryptocurrency romance scam that resulted in losses totaling $450,000. Deputy District Attorney Erin West in Santa Clara, California, reported receiving an average of 5-6 emails daily from victims of pig butchering scams. Stolen funds are often transferred overseas to transnational criminal organizations in Myanmar and Cambodia, with trafficked individuals being used as virtual slaves to carry out these scams.
Gonzalez urged the public to exercise caution when engaging in cryptocurrency investments and to avoid downloading apps from unverified websites. Victims of pig butchering scams often find themselves conned out of significant sums of money, with one victim losing $5 million. The Brooklyn-based victims alone were scammed out of $5 million through crypto investments, leading to financial hardship for many individuals who trusted the scammers with their money. Victims from California, Pennsylvania, and Illinois collectively lost $366,665 to the same scam, highlighting the widespread nature of these fraudulent activities.
Prosecutors in Brooklyn seized nearly two dozen web domains affiliated with the pig butchering scheme, signaling a strong stance against these fraudulent practices. The operation aimed to disrupt the scammers by shutting down their online platforms and raising awareness among the public to prevent further victims from falling prey to crypto investment scams. Gonzalez stressed the importance of reporting such crimes, as many victims may feel embarrassed or unsure about how to seek help. By taking action against these criminals and educating the public, authorities hope to reduce the prevalence of pig butchering scams and protect individuals from financial exploitation in the cryptocurrency space.
