- Four individuals were charged with money laundering for allegedly laundering over $80 million obtained through crypto investment scams like pig-butchering.
- The scammers used tactics like pig-butchering, where they build relationships and trust with victims through dating sites or social media before pitching a fake crypto investment opportunity.
- The four allegedly opened shell companies and bank accounts to enable moving the illegally obtained funds, and two of them face up to 20 years in prison if convicted.
The four allegedly obtained funds through pig-butchering and other fraud schemes, totaling over $80 million.
Details of the Charges
The U.S. Department of Justice announced charges on Thursday against four individuals in Los Angeles for allegedly laundering proceeds from crypto investment scams.
The four allegedly opened shell companies and bank accounts to launder the funds, which were obtained through pig-butchering schemes and other fraudulent tactics. Pig-butchering scammers gain victims’ trust through dating sites or social media before pitching a fake crypto money-making opportunity.
The individuals were charged with conspiracy to commit money laundering, concealment money laundering, and international money laundering. Two of the charged, Lu Zhang and Justin Walker, face up to 20 years in prison if convicted.
The Fraudulent Schemes
In pig-butchering scams, fraudsters build relationships and trust with victims through dating sites or social media. They eventually pitch what seems like a lucrative crypto investment opportunity.
— BlockNews.com (@blocknewsdotcom) December 14, 2023
NEWS:
DOJ charges four people in Los Angeles with laundering over $80M from crypto scams,
Two facing up to 20 years in prison if convicted.
Other fraudulent tactics were also allegedly used to obtain the $80+ million in funds that the four individuals are charged with laundering.
The DOJ says the four opened shell companies and bank accounts to enable moving the illegally obtained funds.
Key Takeaways
- Four individuals were charged with money laundering in an alleged scheme involving crypto investment scams.
- Over $80 million in funds were obtained through pig-butchering and other fraudulent tactics.
- Shell companies and bank accounts were opened to launder the funds.
- Two of the charged face up to 20 years in prison if convicted.
