BROOKLYN, NY — Brooklyn District Attorney Eric Gonzalez announced a significant breakthrough in combating cryptocurrency scams, particularly a tactic known as “pig butchering.” This scam involves tricking individuals through online platforms into investing in fake cryptocurrency opportunities. The operation led to the seizure of 21 web domains following reports from Brooklyn victims, who collectively lost over five million dollars.
Gonzalez’s Virtual Currency Unit pinpointed and disrupted the scheme, aiming to educate the public on recognizing and avoiding such scams. He emphasized the importance of skepticism towards too-good-to-be-true investment opportunities, especially from sources not met in person.
The initiative was spurred by increasing complaints about cryptocurrency scams, including a notable case where a 51-year-old woman lost $22,680 through a scam website. Her story is one of many, with victims nationwide suffering losses amounting to at least $1,063,846 through interconnected fraudulent sites.
Investigations revealed the complex nature of these scams, involving money laundering and potentially utilizing human trafficking victims to facilitate operations, often based in Southeast Asia. The difficulty of prosecuting international scam networks led the Brooklyn DA’s office to focus on disrupting their online infrastructure.
In response to the widespread impact of these scams, including significant targeting within the Chinese and Russian communities of Brooklyn, the DA’s office has launched a public information campaign. The goal is to increase awareness and prevent future victims of this increasingly prevalent scam.