Authorities in New York City have disrupted an online fraud operation that was stealing millions of dollars by tricking victims into making fake cryptocurrency investments. The scammers, known for their involvement in “pig butchering” schemes, used various web domains to gain victims’ trust, often through dating apps or other platforms, before directing them to invest in fraudulent schemes. Brooklyn District Attorney Eric Gonzalez led the seizure of 21 web domains used by these scammers and emphasized the importance of shutting down such operations to protect the public and educate them about the risks of cryptocurrency investments that seem too good to be true. The New York Police Department has received numerous complaints about online crypto scams, but the actual number of victims is likely much higher due to underreporting and victims’ reluctance to come forward.
The victims who have reported losses in Brooklyn alone have totaled over $4 million, with some individuals losing their entire life savings or mortgaging their homes. One victim, a 51-year-old woman, lost $22,680 after joining online chat groups discussing crypto investments and being persuaded to make deposits that ultimately disappeared. The investigation into this case revealed that the woman’s money was shuffled through multiple cryptocurrency addresses, transferred to a foreign crypto exchange, and cashed out by an individual in a location beyond U.S. jurisdiction, possibly China. Similar schemes were found to have victimized individuals from California, Pennsylvania, and Illinois, resulting in a total loss of $366,665.
In one case, a woman shared her experience of falling victim to a scammer who initially connected with her through a dating app. Despite some initial hesitation, she eventually invested $118,000 in crypto after tapping into her personal loan and pension funds, while trying to buy her former husband out of their house. The emotional toll of losing large sums of money to these scams was evident as the woman expressed feeling foolish and regretful for falling for the scammer’s tactics. Authorities have stressed the importance of raising awareness about these scams and cautioning the public against trusting investment opportunities that promise high returns with little risk.
District Attorney Gonzalez warned against downloading apps from unverified cryptocurrency websites and reiterated the importance of skepticism when approached with investment opportunities that seem too good to be true. The disruptive actions taken by law enforcement in seizing scammer-controlled web domains aim to protect residents of Brooklyn and beyond from falling victim to these fraudulent schemes. The investigation into online crypto scams is ongoing, with efforts being made to track perpetrators who cash out funds in locations beyond U.S. jurisdiction. The impact of these scams on victims can be devastating, with some losing substantial amounts of money that represent their life savings or financial security.
Overall, the crackdown on online crypto fraud in New York City highlights the prevalence and sophistication of these schemes, targeting unsuspecting individuals through various online platforms. While law enforcement authorities have made significant strides in disrupting such operations and raising public awareness, the challenge of combating these scams remains ongoing. Victims of these schemes are encouraged to come forward and report their losses, despite feelings of shame or embarrassment, to aid in investigations and prevent further individuals from falling prey to similar schemes. By educating the public about the risks associated with cryptocurrency investments and online scams, authorities in New York City hope to protect residents and safeguard their financial well-being from these fraudulent practices.
