Two Chinese nationals have been arrested in the U.S. for their involvement in a cryptocurrency investment scam.
They are accused of leading a group that laundered over $73 million in stolen funds from victims of “pig butchering” scams.
What is pig butchering?
Pig butchering is a type of scam where victims are tricked into investing in fake cryptocurrency opportunities. The scammers often build relationships with their victims over time, gaining their trust before convincing them to invest. Once the victims have invested, the scammers disappear with their money.
The two men arrested, Daren Li and Yicheng Zhang, allegedly oversaw a network of money launderers who helped to move the stolen funds. They used shell companies and international bank accounts to hide the source of the money and make it appear legitimate. The funds were then converted into cryptocurrency and sent to virtual wallets controlled by the scammers.
Li and Zhang have been charged with conspiracy to commit money laundering and could face up to 20 years in prison if convicted. The U.S. Secret Service is continuing to investigate the case and is asking anyone who may have been a victim of this type of scam to come forward.
