Security News > 2024 > May > US arrests suspects behind $73M ‘pig butchering’ laundering scheme
The U.S. Department of Justice charged two suspects for allegedly leading a crime ring that laundered at least $73 million from cryptocurrency investment scams, also known as "Pig butchering."
In pig butchering scams, criminals approach targets using various messaging apps, dating platforms, or social media platforms to build trust and introduce them to investment schemes that help them drain the victims' cryptocurrency wallets.
Court documents reveal that the defendants and their accomplice moved millions transferred by pig butchering victims to U.S. bank accounts linked to dozens of shell companies to various domestic and international bank accounts and cryptocurrency platforms to hide their source and ownership.
Communications between the suspects and their accomplices also revealed details regarding commissions, information on the shell companies they used throughout the laundering process, victim details, and interactions with U.S. financial institutions.
"Complex financial fraud schemes such as pig butchering present a clear and present threat to the financial infrastructure of the United States as countless numbers of Americans continue to be victimized by this predatory activity," said Brian Lambert, Assistant Director of Investigations of the U.S. Secret Service.
In December, the U.S. Department of Justice charged four other suspects-Lu Zhang, Justin Walker, Joseph Wong, and Hailong Zhu-for their alleged involvement in a massive pig butchering scheme that led to over $80 million in victim losses.