Crypto Crackdown: The US Secret Service disclosed the seizure of approximately $500,000 in digital currency tied to a Southeast Asian investment scam, marking an escalation in the United States’ endeavors to combat crypto investment fraud.
The confiscated assets were taken from an account belonging to Chinese businessman Wang Yicheng, who underwent recent scrutiny by Reuters for his participation in deceptive crypto schemes originating from Southeast Asia.
The operation, conducted in the federal court in Massachusetts, stemmed from the detection of funds pilfered from a local victim, ultimately leading to Wang’s account. Described as a ‘pig butchering’ scam, these schemes involve online fraudsters deceiving individuals into investing in fictitious crypto ventures.
Wang, previously identified by Reuters as a businessman linked to Thailand’s elite circles, had transactions totaling over $90 million associated with his account. According to US blockchain analysis firm TRM Labs, at least $9.1 million of these transactions were connected to pig butchering schemes.
Crypto Fraud Probe: Wang’s Ties To Thai Politics And Law Enforcement Revealed In $3 Million Scam
In his capacity as the vice president of the Thai-Asia Economic Exchange Trade Association, a Chinese trade organization headquartered in Bangkok, Wang is believed to have connections with influential political figures and law enforcement in Thailand. The investigation revealed that a California resident, defrauded of approximately $3 million, had funds transferred to an account linked to Wang.
The US Secret Service’s Special Agent Heidi Robles, in an affidavit, noted the account’s high level of activity, suggesting involvement with a criminal group. Despite accusations, Wang has not responded to requests for comment, and the Cyber Crime Investigation Bureau of the Thai police has declined to provide any comments.
The Thai-Asia Economic Exchange Trade Association distanced itself from unlawful activities, stating that it adheres to laws and regulations. They clarified that Wang is no longer a member of the organization, and his personal and business matters have no connection to the trade association.
The ‘pig butchering’ scam, a blend of investment schemes, romance scams, and cryptocurrency fraud, derives its name from the Chinese term “Shaz Hu Pan,” meaning butchering pigs. Originating in Southeast Asia, the scam involves a network of bitcoin con artists targeting victims on social media and dating platforms.
The prevalence of cryptocurrency scams is on the rise, with the Chainalysis 2023 Crypto Crime Report indicating a loss of $5.9 billion in 2022. From January 2021 to June 2022, the Federal Trade Commission reported that over 46,000 individuals disclosed losses exceeding $1 billion to various crypto-related frauds.