Authorities in New York City have successfully disrupted an online fraud operation that targeted victims through phony cryptocurrency investments. The Brooklyn District Attorney's office seized 21 web domains used by scammers in 'pig butchering' schemes, where victims were lured into fake investments after gaining their trust through dating apps or other platforms.
'Pig butchering' scams have been on the rise, defrauding residents of Brooklyn and beyond out of billions of dollars annually. The District Attorney emphasized the importance of shutting down these schemes by seizing their online infrastructure and educating the public on the risks involved.
Individuals were warned against trusting crypto investments that appear too good to be true and advised not to download apps from unverified crypto websites. Despite receiving 50 complaints about online crypto scams last year, authorities believe the actual number of victims is much higher due to underreporting.
Victims who have come forward reported losses exceeding $4 million in Brooklyn alone, with some losing their life savings or mortgaging their homes. One victim shared her story of losing $22,680 after being misled into making multiple deposits for a promised return that turned out to be a scam.
Investigations revealed that victims' funds were moved through various cryptocurrency addresses, deposited into foreign exchanges, and cashed out in jurisdictions beyond U.S. reach. Additional victims from California, Pennsylvania, and Illinois were identified, collectively losing $366,665 to similar schemes.
Another victim recounted falling prey to a scammer who initially contacted her through a dating app, leading to a loss of $118,000 from personal loans and pension funds. The emotional toll on victims was evident, with many expressing feelings of regret and embarrassment for being deceived.
