GRAND RAPIDS, Mich. — The federal government has filed a lawsuit to seize cryptocurrency from an account linked to a “pig-butchering” scheme in Greenville.
“Pig butchering” is defined as a fraud scheme that involves connecting with victims over social media to gain their trust and later convincing them to “invest” in cryptocurrency via an illegitimate website, according to the U.S. Attorney’s Office – Western District of Michigan. The perpetrator usually disappears after a large transaction is made following a series of smaller “investments.”
The lawsuit stems from an alleged incident targeting a Greenville resident that began in December of last year when he received a text through a chat application. Following a discussion on crypto investments, the victim reportedly deposited $1,000 through a bogus website. That “investment” resulted in a $190 return, creating the impression the transaction was legitimate, documents say. Larger “investments” followed through late January.
We’re told the victim lost a total of $171,000 in the scheme, ending when Crypto.com informed him his recent transactions were connected to at least one wallet address belonging to a known scammer.
The victim was unable to recover most of the funds lost in the scheme.
The suit alleges the money must be forfeited to the federal government due to the violations associated with the scheme.
