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Brooklyn DA Shuts Down 21 Sites Linked To “Pig Butchering” Crypto Scam

Victims, Hoodwinked By Online Acquaintances, Lost Millions in Fake Investments

6th April 2024


Brooklyn's DA, Eric Gonzalez, has taken down 21 websites linked to a sneaky cryptocurrency con called the "Pig Butchering" scam.

 

The scammers make friends online, convincing people to invest in cryptocurrencies via shady websites and apps.

 

Victims, thinking they'd strike gold, find themselves blocked from withdrawing cash, losing everything they'd invested.

 

People in Brooklyn lost around $5 million to these smooth-talking scammers, who reached out via texts, dating apps, or WhatsApp. The bait was promising high returns on investments, but it was all a trap.

 

The DA's office snagged Coinformat.com and 20 other dodgy websites, and nabbed three servers in the investigation.

 

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Pig Butchering scams are getting bigger and richer, with trafficked individuals aiding in Asia.

 

Eric Gonzalez has warned people to stay sharp, saying, "If it sounds too good to be true, it probably is."

 

Last year, the U.S. Justice Department seized $112 million in virtual currency linked to similar schemes.

 

Gonzalez stresses the importance of knowing the signs and not falling for flashy crypto promises.

 

The DA's Virtual Currency Unit began this probe after receiving complaints.

 

Victims, like a 51-year-old woman who lost over $22,000, were tricked through crypto chat groups promising big bucks.

 

Another victim, speaking anonymously, shared her tale. A smooth-talker on a dating app led her to invest $118,000, wiping out her savings. In the end she couldn’t withdraw the money.

 

Over 80 dodgy websites were found in the crackdown. Malicious apps were also discovered, capable of stealing sensitive information from unsuspecting users.

 

These scams aren't just local – they span the globe, with human trafficking victims aiding in their operation.

 

In the past, prosecution and recovery efforts have faced challenges due to the international nature of these scams.

 

In Pig Butchering scams, the scammers call the victims "pigs" because they use stories to “fatten up” the victims and make them think they're in a romantic or close relationship.

 

The scammers craft fake online personas with attractive photos, often stolen, to lure victims.


They reach out through dating or social media platforms, sometimes pretending to have dialed a wrong number on WhatsApp.


Once they establish contact, the scammers start harmless conversations, gathering info about their targets' lives to manipulate them later.


They fabricate similarities to gain trust. Soon, they steer the conversation towards investments, boasting about fake successes and showing off phony brokerage accounts.


Victims are persuaded to open accounts at bogus brokerages, where their money goes straight to the scammers. The scammers even let victims withdraw money at first to build trust.


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The scammers exploit victims' emotions and finances, pushing them to invest more. Victims end up losing everything when withdrawals are blocked or they face massive losses.


To fight back, Gonzalez's team which seized the websites has launched a public awareness campaign, targeting vulnerable communities.


They’ve urged people to watch for red flags, like strangers boasting about crypto gains and avoid joining random chat groups about investments.