"Authorities Seize $8.2M in Crypto from 'Pig Butchering' Scam"

Federal authorities have recovered $8.2 million in cryptocurrency from a sophisticated text message scam that targeted unsuspecting victims. The operation, which used a trust-building approach to defraud individuals, has resulted in the identification of 38 victims, with plans to return the seized funds to them.

The scam, known as "pig butchering," began with misdirected text messages sent to random phone numbers, claiming to have the wrong recipient. Scammers then used various platforms, including dating applications and professional meet-up groups, to make initial contact with potential victims. Once contact was established, the fraudsters worked to build trust with their targets, using manipulation tactics to create friendships and gain their confidence over time.

After establishing trust, the scammers began sharing stories about cryptocurrency investment success, guiding victims through setting up legitimate cryptocurrency exchange accounts, and convincing them to transfer funds to a fake investment platform under their control. The fake platform showed victims false profits to encourage additional investments, leading them to believe their money was growing and that they could withdraw it at any time.

One Ohio woman lost her entire life savings of $663,000 to the scam. When she could not send more money, the fraudsters threatened to harm her friends and family. Authorities have identified 33 victims so far, with total losses reaching $6 million.

Investigators tracked stolen funds that had been converted to Tether and transferred to three cryptocurrency addresses. After obtaining a federal seizure warrant, authorities froze the funds in the scammers' accounts and transferred the cryptocurrency to a wallet controlled by law enforcement. A forfeiture complaint was filed on February 27, requesting court approval to return the seized funds to the victims.

The seized accounts contained more money than the traced victim losses, with a total of $8.2 million found. The additional funds are believed to be linked to money laundering and wire fraud. Blockchain security firm Cyvers reports that this type of scam has become a major threat, with 200,000 cases identified in 2024, resulting in billions of dollars in losses. Security experts at Chainalysis warn that artificial intelligence is making such scams easier to operate, with scam losses expected to reach record levels in 2025.

The case remains active as authorities work