By George Ward
The United States Department of Justice (DoJ) has made headlines, confiscating $112M in cryptocurrency assets connected to pig-butchering scams. This massive crackdown is a sign that authorities are taking note of the prevalence of crypto scams and looking for ways to prosecute them.
The DoJ had taken measures against seven pig-butchering cryptocurrency hoax sites used for fraudulent activities such as Ponzi schemes, money laundering, and selling non-existent products.
DoJ Seizes $112 Million In Crypto
The Department of Justice has confiscated $112 million in cryptocurrency and other assets implicated in a crackdown on swindles involving pig slaughtering. According to the press release, the Justice Department seized six crypto asset accounts.
The affidavit supporting the seizure warrant mentions the term ‘pig’ used by scammers in their schemes. These scammers use intricate stories to convince the ‘pigs’ to trust them and lure them into cryptocurrency investments.
The FBI has observed that pig butchering fraud is on the rise, with swindlers gradually winning the trust of those they target over a prolonged period. Accordingly, the DoJ has taken action against seven digital scam sites that utilized the pig butchering vector.
This most recent seizure serves as an indication that criminals are still making use of this approach to deceive unsuspecting people. At least ten people were involved in one of the accounts, with the last transaction connected to it occurring on March 21.
Law enforcement officials have seized funds from six accounts across Los Angeles, the District of Arizona, and the District of Idaho. The most funds, amounting to around $66.4 million, were found in the Los Angeles account.
California Takes A Harder Stance Against Offenders
As awareness of cryptocurrency-related crimes increases, authorities are taking a more rigid stance on those committing such offenses. A recent report by on-chain analytics platform ImmuneFi revealed that crypto hacks had risen drastically by 192% within the past twelve months.
The DeFi and NFT sectors are the most affected because of their increased popularity and the amount of money invested. Consequently, the California Department of Financial Protection and Innovation (DFPI) has created a cryptocurrency scam tracker to provide individuals with information on identifying and avoiding such scams.
Crypto crimes, such as the illegal butchering of pigs, have become increasingly complex, and people need to be aware of the dangers.
DeFi Platform Sentiment Suffers Reentrancy Attack By Hackers
Hackers continue to focus on the DeFi sector, with Sentiment the latest to suffer an assault. On April 4, the platform endured a reentrancy attack, losing almost $1 million worth of crypto assets.
The team admitted that there had been an attack. Consequently, the main contract was halted, with users only able to withdraw their assets.
The team sought the assistance of external security specialists who helped to devise a solution. Moreover, the group continues its collaboration with the police and other bodies to trace the cybercriminal and reclaim the funds.
According to investigations, the attacker manipulated the view re-entrance Balancer bug to run destructive code before adjusting pool balances. Then, they took the funds with inflated collateral.
There have been many assaults on DeFi platforms in the past few months. Most recently, Euler Finance had about $200 million taken. Still, after a discussion with the team, the hacker expressed remorse and returned the money.
Allbridge was another casualty of an attack. The cross-chain protocol lost nearly $570,000 at the start of April due to the potential manipulation of a swap formula.
The network granted the thief a reward after returning some of the funds. Crypto scams pose a significant risk to the industry’s growth.
But the DoJ’s recent action makes it clear that authorities are taking the issue seriously and looking for ways to stop it.