US seizes a cryptocurrency wallet involved in a pig-killing scam, with receipts exceeding $90 million in the past three years.

US Authorities Seize $90 Million in Cryptocurrency Involved in Pig-Killing Scam Over Three-Year Period

Author: Tom Wilson, Poppy Mcpherson, Reuters; Compiled by: Song Xue, LianGuai

The United States has seized about $500,000 worth of digital currency from an account registered by a Chinese man who appeared in a Reuters investigation into cryptocurrency investment fraud in Southeast Asia.

US authorities said the fraud case that led to the seizure involved a cryptocurrency investment scam called “piggy bank”. In this type of scheme, scammers deceive people they meet online, convincing them to invest in false cryptocurrency schemes.

The US Secret Service seized these cryptocurrency assets from an account named Wang Yicheng in June, according to a filing by US authorities in a federal court in Massachusetts. At that time, these cryptocurrency assets were worth about $500,000. The November 21 filing stated that funds initially stolen from a victim in Massachusetts were traced to Wang Yicheng’s account.

• Blockstream Raises $5.07 Million in Series 1 ASIC Note, Targets Non-US Investors for Series 2
• Justin Sun: HTX and Poloniex Customer Assets Are 100% Safe (Despite the Hacks!)
• Visionary Leadership: Luiz Góes at the Forefront of LFi

A Reuters article last month confirmed that Wang Yicheng is a businessman who served as vice chairman of a Chinese trade group in Bangkok and established relationships with Thai law enforcement and political elites. The November 23 article detailed that one of Wang Yicheng’s cryptocurrency accounts received over $90 million in recent years, according to documents and transaction logs. At least $9.1 million of that amount came from a cryptocurrency wallet, which, according to US blockchain analysis firm TRM Labs, is linked to the piggy bank fraud scheme.

The report highlighted the case of a man from California whose family claimed he was defrauded of about $2.7 million. The report showed that he sent money to a cryptocurrency wallet and then transferred the funds to an account under Wang’s name. The recent US court filing cited another example, involving a resident of Cambridge, Massachusetts, who was allegedly scammed out of about $478,000 worth of cryptocurrency, which was transferred to two cryptocurrency accounts, one of which was under Wang’s name.

The detailed information provided in the US court filing about this account, including the registrant, location, last four digits of the account number, and corresponding cryptocurrency wallet address, matches the detailed information about Wang’s account emphasized in the Reuters report.

Based on written testimony from US Secret Service agent Heidi Robles, US authorities stated that “since its inception in 2020, the account under Wang’s name has received more than $90 million.” Robles stated in the document, “This level of activity indicates that the account is controlled by a criminal organization with the aim of money laundering.”

The trade group represented by Wang is called the Thailand-Asia Economic Exchange and Trade Association. In response to questions for this article, the company stated that it complies with laws and regulations and does not support illegal activities. The statement said that Wang’s business and personal affairs “have nothing to do with the industry association” and added that Wang is no longer a member of the organization and is no longer associated with him.

In a letter dated December 4th, the Taya Group stated that Mr. Wang left the board over three months ago. This was due to Wang’s failure to pay the new membership fee of the trade organization and “personal reasons,” as outlined in the letter without further details. The organization stated that they conducted a background check on Wang when he initially applied for membership, and a Reuters report on November 23rd did not find any criminal records.

The documents submitted to the US court are part of a civil forfeiture lawsuit, in which the government seeks court approval to seize assets it claims are connected to criminal activities. The Massachusetts US Attorney’s office stated when submitting the documents in November that no criminal charges have been filed in connection with this case.

Massachusetts Acting US Attorney Joshua Levy told Reuters that his office has been using civil forfeiture to recover funds obtained through cryptocurrency fraud schemes. He stated in a statement, “Although cryptocurrency transactions may seem elusive, law enforcement agencies are adapting and evolving.”

We will continue to update Blocking; if you have any questions or suggestions, please contact us!