Blockchain fraud is gradually moving to the global level.
Four U.S. citizens were recently charged with participating in a fraudulent scheme that saw them earn more than $ 80 million in cryptocurrency investment scams. Among the defendants are Lu Zhang, Justin Walker and Joseph Wong from California, as well as Hailong Zhu from Illinois.
The US Department of Justice (DoJ), which announced the arrests of Zhang and Walker, said that the suspects had previously opened fictitious companies and bank accounts to carry out scams, transferring illegally obtained funds to domestic and international financial institutions. If convicted, Zhang and Walker could face up to 20 years in prison. Their alleged accomplices are still at large.
The DoJ clarified that the investigation identified more than 284 transactions that resulted in victims losing more than $ 80 million, with more than $ 20 million being directly transferred to the accounts of the accused.
Earlier this month, Yeze Harrison Arinze, a Nigerian national, was sentenced to three years in prison for participating in similar scams that resulted in 34 victims from 13 countries suffering losses of $ 592,000.
Late last month, the DoJ also announced the confiscation of nearly $ 9 million in Tether cryptocurrency belonging to a Southeast Asian organization that defrauded more than 70 victims.
"Pig Butchering" scams, according to a special report by Trend Micro, are classified as romantic financial scams, in which attackers find their victims on dating sites, and then lure them into their investment scam, promising the highest possible profit in a short time.
At the same time, according to the FBI's Internet Crime Complaint Center, losses from cryptocurrency investment scams reached $ 2.57 billion in 2022, an increase of 183% compared to 2021.
Most of the phone numbers used in such scams are traced to leaked databases with personal information, which indicates that scammers may use the leaked information to find the next victims.
Cryptocurrency scams are becoming an increasingly common and sophisticated threat. Although victims are more likely to be residents of the United States and other developed countries, the problem is global, affecting people in dozens of different countries.
The growing number of victims and the amount of damage indicates the need for international cooperation to effectively counter this type of cybercrime. The competent authorities and financial regulators will have to take coordinated measures at the legislative and enforcement levels to protect citizens and restore order in the cryptocurrency market.
Four U.S. citizens were recently charged with participating in a fraudulent scheme that saw them earn more than $ 80 million in cryptocurrency investment scams. Among the defendants are Lu Zhang, Justin Walker and Joseph Wong from California, as well as Hailong Zhu from Illinois.
The US Department of Justice (DoJ), which announced the arrests of Zhang and Walker, said that the suspects had previously opened fictitious companies and bank accounts to carry out scams, transferring illegally obtained funds to domestic and international financial institutions. If convicted, Zhang and Walker could face up to 20 years in prison. Their alleged accomplices are still at large.
The DoJ clarified that the investigation identified more than 284 transactions that resulted in victims losing more than $ 80 million, with more than $ 20 million being directly transferred to the accounts of the accused.
Earlier this month, Yeze Harrison Arinze, a Nigerian national, was sentenced to three years in prison for participating in similar scams that resulted in 34 victims from 13 countries suffering losses of $ 592,000.
Late last month, the DoJ also announced the confiscation of nearly $ 9 million in Tether cryptocurrency belonging to a Southeast Asian organization that defrauded more than 70 victims.
"Pig Butchering" scams, according to a special report by Trend Micro, are classified as romantic financial scams, in which attackers find their victims on dating sites, and then lure them into their investment scam, promising the highest possible profit in a short time.
At the same time, according to the FBI's Internet Crime Complaint Center, losses from cryptocurrency investment scams reached $ 2.57 billion in 2022, an increase of 183% compared to 2021.
Most of the phone numbers used in such scams are traced to leaked databases with personal information, which indicates that scammers may use the leaked information to find the next victims.
Cryptocurrency scams are becoming an increasingly common and sophisticated threat. Although victims are more likely to be residents of the United States and other developed countries, the problem is global, affecting people in dozens of different countries.
The growing number of victims and the amount of damage indicates the need for international cooperation to effectively counter this type of cybercrime. The competent authorities and financial regulators will have to take coordinated measures at the legislative and enforcement levels to protect citizens and restore order in the cryptocurrency market.
