"Ohio Seizes $8.2M in Crypto: Pig Butchering Scam Victims to Recover Funds"
1min read The U.S. Attorney's Office in Ohio is seeking court approval to return approximately $8.2 million in seized cryptocurrency to victims of a fraudulent investment scheme. The funds, held in three cryptocurrency wallets, were recovered from scammers who targeted unsuspecting individuals through "wrong number" text messages and fake trading platforms.
The scam, known as "pig butchering," involved scammers striking up conversations with random people on their phones, dating applications, and professional meet-up groups. They would then befriend the victim and gradually lure them into a dubious crypto investment. Victims were guided to open legitimate accounts on platforms like Crypto.com and coinbase, and then convinced to transfer their funds to a malicious investment site controlled by the scammers.
Some victims were initially allowed to withdraw small amounts to make the scheme seem legitimate. However, their funds were eventually blocked, and when they tried to cash out, the scammers demanded additional payment under the guise of tax requirements. One victim, a woman from Lake County, Ohio, lost her entire life savings of $663,000, including funds from her Roth IRA.
Following an investigation and blockchain analysis, authorities traced the stolen crypto to three wallets. The FBI executed a seizure warrant, and with Tether's assistance, the funds were frozen and transferred to a law-enforcement-controlled wallet. In a Feb. 27 forfeiture complaint, U.S. Attorney Carol Skutnik and Assistant U.S. Attorney James Morford asked the court to formally seize the recovered crypto, which also contained additional funds allegedly tied to money laundering and wire fraud.
Pig butchering scams accounted for 33.2% of scam-related crypto inflows in 2024, with deposits to these scams surging 210% year-over-year, according to Chainalysis.
