The US Secret Service revealed a seizure of around $500,000 in digital currency connected to a Southeast Asian investment scam, as part of the United States’ intensified efforts against crypto investment fraud.
The assets were confiscated from an account registered to Chinese businessman Wang Yicheng, who was recently investigated by Reuters for his involvement in fraudulent crypto schemes originating from Southeast Asia.
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This action highlights the increased vigilance against ‘pig butchering’ scams, a term denoting fraudsters who deceive online contacts into investing in fake crypto ventures.
The federal court in Massachusetts, where money pilfered from a local victim was traced back to Wang’s account, witnessed the execution of this seizure.
Wang’s Big-Time Connections
Wang was identified earlier by Reuters as a businessman connected to Thailand’s aristocratic circles. Over $90 million worth of transactions were linked to Wang’s account; according to US blockchain analysis firm TRM Labs, at least $9.1 million of those transactions were connected to pig butchering schemes.
As the vice president of the Thai-Asia Economic Exchange Trade Association, a Chinese trade organization with its headquarters in Bangkok, he is thought to be a Chinese guy with connections to both influential political people and Thailand’s law enforcement.
Illicit Crypto And Criminal Groups
A California guy who was robbed of about $3 million had his money transferred into an account linked to Wang, according to the investigation. The information about the account in the US court complaint, including its registration, address, account number, and cryptocurrency wallet address, is consistent with what the Reuters investigation found.
According to US Secret Service Special Agent Heidi Robles’ affidavit, the account’s level of activity suggests that it is under the authority of a criminal group. Wang has not reacted to demands for comment despite these accusations, and the Cyber Crime Investigation Bureau of the Thai police has declined to comment.
The Thai-Asia Economic Exchange Trade Association stated that it did not condone unlawful activities and that it complied with laws and regulations in response to inquiries from the South China Morning Post.
It stated that Wang was no longer a member of the organization and that it was no longer in communication with him, and that his personal and commercial matters had “nothing to do with the trade association.”
The Pig Butchering Trap
Combining investment schemes, romance scams, and cryptocurrency fraud, the pig butchering scam, commonly referred to as a romance scam, is a long-term deception.
The name of this scam comes from the Chinese term “Shaz Hu Pan,” which means butchering pigs. It began in Southeast Asia. A network of bitcoin con artists looks for victims on social media and dating websites.
Scams involving cryptocurrency are increasing. According to the Chainalysis 2023 Crypto Crime Report, $5.9 billion was lost in 2022.
From January 2021 to June 2022, over 46,000 people reported losing over $1 billion in cryptocurrency to different frauds, according to the Federal Trade Commission (FTC), and that number only includes persons who voluntarily provided this information with authorities.
Featured image from Freepik
