The FBI has seized $8.2 million in cryptocurrency connected to a complex international romance scam known as “pig butchering.”
The seizure follows an investigation led by the FBI’s Cleveland Field Office, which identified more than 30 victims whose funds had been funneled through a web of crypto transactions.
Newsweek contacted the Ohio Department of Justice and the FBI for comment on this story via email.
Why It Matters
The seizure is one of the most significant U.S. law enforcement actions against dating scams in history. These scams, named for their practice of “fattening up” victims before draining them financially, have become one of the fastest-growing and damaging forms of crypto fraud worldwide. Additionally, the blockchain tracking system the FBI developed for this case can be used to solve future scams.
What To Know
Authorities traced the funds to three cryptocurrency wallet addresses, after the U.S. Attorney’s Office for the Northern District of Ohio filed a civil forfeiture complaint in February highlighting the scam.
Although the scammers attempted to obscure their tracks using advanced laundering methods, investigators uncovered repeating transaction patterns and wallet reuse that helped them reconstruct the financial trail.
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By leveraging sophisticated blockchain analytics, the FBI was able to trace stolen assets through a labyrinth of digital pathways, including unhosted wallets, Ethereum and TRON networks, and multiple DeFi protocols.
The Ohio filing described how one Cleveland-based victim was convinced to liquidate her entire retirement savings, transferring over $650,000 in digital assets to what she believed was a legitimate investment account.
What Is a ‘Pig Butchering’ Scam?
“Pig butchering” scams originated in China, with the term referring to the way farmers fatten pigs up before slaughtering them for more food. In the scam, criminals make victims more emotionally vulnerable, often in a romantic context, before convincing them to transfer large amounts of money.
Modern day romance scams often make heavy use of dating apps, targeting people looking for emotional connections online who may be more susceptible to manipulation.
What People Are Saying
Blockchain security service ChainAnalysis said in a statement last year: “Romance scams, also known as ‘pig butchering scams’ for the way bad actors say they ‘fatten up’ their victims to extract the most possible value, are a large and growing problem with a significant crypto nexus.
“Romance scammers start by building a relationship over time with the victim (usually of a romantic nature, as the name implies), often initiating contact by pretending to have text messaged a wrong number or via dating apps.
“As the relationship deepens, the scammer will eventually push the victim to invest money (sometimes cryptocurrency, sometimes fiat) in a fake investment opportunity, and continue to do so until they eventually sever contact.”
What Happens Next
The Department of Justice said that will continue its probe into related scams, which it suspects may involve additional victims and broader fraud networks. The funds are expected to be used for restitution, though authorities said that many affected individuals remain unidentified.