Alabama Seizes Nearly $125K in Crypto Assets from Romance Scams
ALABAMA (NFinancial Post) —
InBrief
Alabama securities regulators have returned more than $125,000 in cryptocurrency assets to two residents who lost nearly $580,000 to elaborate “pig butchering” romance scams. Pig butchering scams now account for 33.2% of the $9.9 billion in global crypto fraud reported in 2024.
TheAlabamaCases
Alabama Securities Commission officials recovered $53,227.81 for a Baldwin County resident victim of a sceme that cost her nearly $185,000 and $73,927.68 for an Etowah County person defrauded of $395,000.
Both cons began through online dating apps or messaging platforms. In the Baldwin County case, the victim met her likely scammer via Bumble. Over three months, she was persuaded to transfer substantial crypto assets to a platform presented as legitimate, ultimately triggering the decision to involve authorities when withdrawal attempts revealed red flags.
Similarly, the Etowah County victim encountered their scammer through a WhatsApp advertisement. Convinced to invest $395,310, she was initially misled into believing the fraudulent platform held claims of SEC registration and ties to Charles Schwab. Wells Fargo Advisors flagged suspicious activity related to these crypto investments.
Rise ofPigButcheringFraud
“Pig butchering” – a term for romance scam victims being groomed to invest large sums in fraudulent crypto trading platforms – has become the fastest growing category of crypto fraud, authorities note.
According to Chainalysis’s February report, crypto scams reached at least $9.9 billion globally in 2024, with this specific type of fraud accounting for 33.2% of scam revenue. Although illicit proceeds from pig butchering increased nearly 40% last year, the number of deposits more than doubled, aided by criminals employing shorter cons and targeting larger numbers of victims.
These sophisticated scams exploit the perceived anonymity and borderless nature of cryptocurrency transactions to bilk billions from American residents.
Challenges andCalltoAction
“The ASC continues to see an increase in cryptocurrency fraud, including ‘Pig Butchering,'” said Alabama Securities Commission Director Amanda Senn. “Most cyber crimes originate overseas and the transactions are instant, making it nearly impossible to apprehend the criminals or recover funds.”
(Senn emphasized) The window for effective intervention diminishes dramatically with time.
LawEnforcementResponse
Federal agencies are actively working to combat these schemes. In March, the U.S. Treasury sanctioned Philippine-based Funnull Technology Inc. and its administrator, Liu Lizhi, for allegedly enabling pig butchering and other crypto frauds targeting Americans that yielded over $200 million.
Conclusion
The Alabama cases underscore the devastating financial impact of these scams, fueled by romance and investment promises. Industry officials and regulators urge immediate reporting of suspected fraud to state securities regulators, as recovery chances decrease significantly with any delay.
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