The Delaware Department of Justice’s Investor Protection Division has issued cease and desist orders against 23 entities and individuals involved in a popular cryptocurrency scam known as “pig slaughter.” The order also freezes accounts allegedly holding cryptocurrency belonging to victims.

Delaware cracks down on pig slaughter crypto scams

Delaware Attorney General Kathy Jennings announced Wednesday that the state’s Department of Justice (DOJ) Investor Protection Division has “issued a summary order to cease and desist 23 people involved in known cryptocurrency scams. entities and individuals. Like a ‘pig-killing scam’.”

Pig slaughter crypto scams have become very popular recently. Victims of such scams “have been trained to invest in cryptocurrencies over time, only to discover that investments they thought were safe were scams,” the Delaware Department of Justice detailed. “The moniker stems from the practice of scammers ‘fattening’ victims before absconding with their assets (‘massacre’).”

Attorney General Jennings emphasized that “when victims lose money through cryptocurrency scams, including pig-killing scams, it can be difficult to recover those funds,” adding:

Today’s order takes the first step towards protecting Delaware investors from pig slaughter scams by freezing at-risk funds from further transfers by wrongdoers.

The announcement details that the investor protection department has received complaints from residents of the state. They explained that they were contacted online by unknown individuals urging them to invest in cryptocurrencies. Scammers encourage them to invest more after showing huge returns on their initial investment.

However, the Delaware Department of Justice warned: “Ultimately, they can never withdraw their funds and their cryptocurrency disappears. It is estimated that this international scam involved thousands of victims across the country and lost billions of dollars.”

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Authorities describe the Investor Protection Unit working with a data analytics firm to trace cryptocurrencies belonging to two Delaware complainants to multiple wallets on various cryptocurrency exchanges.

The Delaware Department of Justice noted that the cease and desist order prohibits anyone or any entity associated with the wallet from withdrawing or transferring assets owned by the complainant, detailing:

This in turn prevented the exchanges holding the wallets from allowing parties to transfer fraudulently obtained cryptocurrency, effectively freezing accounts holding assets belonging to victims in Delaware.

Have you come across a pig slaughtering crypto scam? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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