DOJ Indicts Four in $80 Million ‘Pig Butchering’ Crypto Scam

The U.S. Department of Justice (DOJ) has brought charges against four individuals for their alleged involvement in a large-scale crypto investment scam. The scam, known as “pig butchering,” involves more than $80 million in victim losses. The accused are Lu Zhang from Alhambra, California, Justin Walker of Cypress, California, Joseph Wong of Rosemead, California, and Hailong Zhu of Naperville, Illinois.

Pig butchering scams typically involve scammers reaching out to potential victims through social media or dating sites to establish a relationship. They then lure these victims into fraudulent crypto investment opportunities on platforms they control. Initially, the victims see significant gains in their accounts, which persuades them to invest more. However, they eventually find themselves unable to withdraw their funds.

The DOJ’s case against these individuals is based on their alleged involvement in laundering the proceeds of this scam. According to the indictment, the four accused opened shell companies and bank accounts to facilitate the laundering of these illicit funds. The indictment specifically states: “A seven-count indictment was unsealed yesterday in Los Angeles charging four individuals for their alleged roles in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds.”

In total, the DOJ claims that Zhang, Walker, Wong, and Zhu were involved in at least 284 transactions, transferring the ill-gotten gains to both domestic and international financial institutions. They also allegedly deposited $20 million of these funds directly into their own bank accounts.

Both Zhang and Walker have been arrested and made their initial court appearances. The charges they face include conspiracy to commit money laundering, concealment of money laundering, and international money laundering. If convicted, each individual could face a maximum sentence of 20 years in prison.

Just two weeks ago, the U.S. Department of Justice (DOJ) confiscated roughly $9 million in tether (USDT) in a major raid connected to “pig butchering” schemes.