SEC Sues 3 Individuals, 5 Firms for Alleged Pig Butchering Crypto Scams

The Securities and Exchange Commission (SEC) of the United States has filed lawsuits against five companies and three individuals, alleging that they have been involved in complex “pig butchering” schemes. In order to gain victims’ trust and persuade them to invest in phony cryptocurrency platforms before stealing their money, con artists use social media apps. With these moves, the SEC is taking on a cryptocurrency scam of this kind for the first time.

According to Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, “Relationship investment scams, including those involving crypto asset investments, pose a risk of catastrophic harm to retail investors.” Grewal emphasized that these schemes are becoming more frequent and dangerous, often involving fabricated crypto ecosystems to lure unsuspecting investors.

Schemes Defraud Victims Out of Millions

One of the SEC’s lawsuits targets the fake crypto trading platform NanoBit. The scheme’s participants, including three U.S. residents, allegedly scammed at least 18 investors, stealing nearly $1 million in cryptocurrency and fiat money. The scammers, posing as finance experts on WhatsApp, lured investors into the fraudulent platform. Investors thought they were making profits, but when they tried to withdraw funds, the fraudsters vanished.

The fraudulent platform CoinW6 is the subject of another SEC action. This hoax purportedly used the identities of young professionals to establish fictitious romantic relationships on social media, defrauding 11 investors of $2.2 million. After bringing up cryptocurrency investments, the con artists persuaded their victims to make sizable investments before vanishing.