The United States has recently taken action in an ongoing crypto-investment fraud scheme, seizing digital currency valued at approximately half a million dollars. The fraud, popularly known as “pig butchering,” involves manipulating unsuspecting victims into investing in fraudulent cryptocurrency schemes through online interactions. This valuable information comes from a report by Reuters, which references court documents filed by US authorities in Massachusetts.
In June, the US Secret Service confiscated the digital currency from an account registered to a Chinese individual named Wang Yicheng. The seized digital assets amounted to around $500,000. The funds were found to be illicitly diverted from a victim residing in Massachusetts and deposited into Wang’s account, as stated in the court filing submitted on November 21.
Revealing Connections and Transactions
A Reuters article shed light on Wang Yicheng’s background and connections. He was identified as a businessman who had cultivated relationships with influential figures in Thailand’s law enforcement and political circles. Wang served as the vice president of a Chinese trade group based in Bangkok. The report, published on November 23, highlighted a crypto account under Wang’s name that had received over $90 million in recent years, as evidenced by transaction logs and documents.
Notably, at least $9.1 million of those funds were linked to pig-butchering scams, according to TRM Labs, a US blockchain analysis firm.
The trade group associated with Wang is known as the Thai-Asia Economic Exchange Trade Association. When questioned, the association emphasized its commitment to complying with laws and regulations and distanced itself from any involvement in illegal activities. They clarified that Wang was no longer associated with the group and that all contact had been severed.
Civil Forfeiture Action and Government Response
The court filing represents a civil forfeiture action, wherein the US government seeks court approval to take possession of assets seized in connection with alleged criminal activities. Currently, no criminal charges have been filed by the US Attorney’s Office in Massachusetts in relation to this specific case.
Acting US Attorney Joshua Levy in Massachusetts remarked on the use of civil forfeitures to recover funds stolen through crypto fraud schemes: “Despite the seemingly elusive nature of cryptocurrency transactions, law enforcement is adapting and evolving.”
It is worth noting that the US government is the largest holder of Bitcoin (BTC), having acquired approximately 200,000 coins through seizures related to criminal activities. These digital assets are securely stored offline in encrypted hardware wallets controlled by various federal agencies, including the Justice Department and the Internal Revenue Service (IRS).
