In a significant move, the United States has confiscated digital currency valued at approximately $500,000 from an account associated with Wang Yicheng, a Chinese individual embroiled in a crypto-investment fraud scheme operating from Southeast Asia. The scam, known as pig butchering, involves manipulating individuals online into investing in fraudulent crypto schemes.
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Key Developments:
Seizure Details:
The U.S. Secret Service seized the cryptocurrency from Wang Yicheng’s account in June, following an investigation into pig-butchering scams.
The seized crypto, initially stolen from a Massachusetts victim, amounted to $500,000 at the time of the seizure.
Reuters Investigation Findings:
A recent Reuters investigation shed light on Wang’s involvement in crypto scams, revealing that a crypto account in his name received over $90 million in recent years.
Documents and transaction logs tied at least $9.1 million to a crypto wallet associated with pig-butchering scams.
Scam Victims and Affiliation:
The report highlighted victims such as a California man scammed out of $2.7 million and a Cambridge, Massachusetts resident cheated of $478,000 in crypto.
The court filing detailed that funds were diverted into two crypto accounts, one of which was registered in Wang’s name.
Implications and Responses:
U.S. authorities deem Wang’s account activity indicative of a criminal organization laundering stolen funds, as detailed in an affidavit by U.S. Secret Service Special Agent Heidi Robles.
Wang, previously identified as a businessman linked to Thailand’s law enforcement and political elite, did not respond to requests for comment.
The Thai-Asia Economic Exchange Trade Association, the trade group Wang represented, disassociated from him, stating he left the board three months ago due to non-payment of membership dues and personal reasons.
The U.S. court filing is part of a civil forfeiture action seeking court approval to take possession of seized assets, with no criminal action filed as of now.
Crypto Fraud Enforcement:
Acting U.S. Attorney Joshua Levy emphasizes the adaptation of law enforcement to cryptocurrency transactions, using civil forfeitures to recover funds stolen in crypto fraud schemes.
Despite the evolving nature of cryptocurrency transactions, authorities remain vigilant in pursuing legal actions against those involved in fraudulent activities.
This latest development underscores the ongoing efforts to combat crypto-related fraud, revealing the adaptability of law enforcement in the face of evolving cyber threats. As the saga unfolds, the intricate web of crypto scams and their global implications continues to shape the landscape of digital asset security and regulation.
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