Two Chinese arrested for laundering 11 billion yen in cryptocurrency scam 'Pig Killer'
On May 17, 2024, the U.S. Department of Justice announced that it had arrested and indicted two Chinese suspects for their involvement in a '
Office of Public Affairs | Two Foreign Nationals Arrested for Laundering at Least $73M Through Shell Companies Tied to Cryptocurrency Investment Scams | United States Department of Justice
https://www.justice.gov/opa/pr/two-foreign-nationals-arrested-laundering-least-73m-through-shell-companies-tied
US arrests suspects behind $73M 'pig butchering' laundering scheme
https://www.bleepingcomputer.com/news/security/us-arrests-suspects-behind-73m-pig-butchering-laundering-scheme/
'Pig Butchering' is a scam that originated in China. It is called 'Sha Zhu Pan' in Chinese and 'Pig Butchering' in English, because the perpetrators skillfully propose investment fraud to their victims by building a relationship of trust with them using messaging apps, etc., and likening it to pig farming. The scam has been spreading worldwide, especially in the United States.
Four men and women indicted on suspicion of laundering more than 10 billion yen in a Chinese romance scam called 'Pig Killing' - GIGAZINE
The U.S. Department of Justice announced that it arrested Darren Li (41), a dual citizen of China and St. Kitts and Nevis, at Hartsfield -Jackson Atlanta International Airport on April 12, 2024, and Yichen Zhang (38), a Chinese national, in Los Angeles on May 16, 2024, for their alleged involvement in laundering funds obtained from this cryptocurrency investment scam.
According to documents filed in court, the two suspects are accused of directing an international investment fraud syndicate that persuaded victims to transfer money into the bank accounts of dozens of shell companies.
The funds defrauded from the victims were then transferred and laundered to domestic and international bank accounts and cryptocurrency platforms, including $73 million sent to the Bahamas and exchanged for the cryptocurrency USDT (Tether). Additionally, cryptocurrency wallets involved in the scheme were found to have contained over $341 million in cryptocurrency.
Authorities investigating this investment fraud were able to uncover the full extent of the criminal network from records of communications between the two suspects and their co-conspirators, including details of the shell companies used in the money laundering scheme, the contents of video calls between them and U.S. financial institutions, and information on victims.
'Complex financial schemes like pig-killing have victimized countless Americans and pose a clear threat to America's financial infrastructure today,' said Brian Lambert, Deputy Director of the U.S. Secret Service . 'In 2023, the Secret Service and our partners seized more than $1.1 billion in fraudulent activity and are on track to exceed that figure in 2024.'
Lee and Chan have been charged with felonious money laundering and six counts of international money laundering, and if convicted, they could face up to 20 years in prison on each charge.
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