US authorities have charged four individuals for their involvement in a fraudulent cryptocurrency investment scheme that defrauded victims of over $80 million. The accused, Lu Zhang, Justin Walker, Joseph Wong, and Hailong Zhu, targeted victims through dating sites and social media, employing a scam known as “pig butchering.” This type of fraud involves building trust with victims before convincing them to invest in a cryptocurrency platform, promising massive profits. However, the scammers ultimately control the investment accounts and steal the victims’ funds. The defendants allegedly laundered the proceeds through shell companies and bank accounts. Over 284 transactions resulted in more than $80 million in victim losses, with $20 million directly deposited into the defendants’ bank accounts. The US Department of Justice advises caution when approached for cryptocurrency investments and urges victims to report such scams to the FBI’s Internet Crime Complaint Center (IC3).
Key Points:
1. Four individuals have been charged for their involvement in a fraudulent cryptocurrency investment scheme that cost victims over $80 million.
2. The scam, known as “pig butchering,” targets victims through dating sites and social media, luring them into cryptocurrency investments with promises of massive profits.
3. The scammers control the victims’ investment accounts and ultimately steal their funds.
4. The defendants allegedly laundered the proceeds through shell companies and bank accounts.
5. Victims are urged to report such scams to the FBI’s IC3, providing relevant information such as suspect investment platforms, cryptocurrency addresses, and transaction details.
6. The US Department of Justice advises caution when approached for cryptocurrency investments and offers guidelines to avoid falling victim to such scams.
7. Lu Zhang and Justin Walker have pleaded not guilty and are scheduled for trial in February 2024, while Joseph Wong and Hailong Zhu are currently being sought by authorities.