SEC Charges 3 Individuals, 5 Companies With Operating Pig Butchering Scams

The U.S. Securities and Exchange Commission has filed suit against three individuals and five companies for allegedly operating pig butchering scams – a type of confidence-enabled investment scam in which fraudsters befriend victims over text-based social media apps, gain their trust and convince them to invest large amounts of money in fictitious crypto platforms before stealing their funds and disappearing.

“Relationship investment scams, including those involving crypto asset investments, pose a risk of catastrophic harm to retail investors, and the threat is increasing rapidly as these scams become more popular with fraudsters,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement in a press statement. “In these two cases, we allege that fraudsters created fake crypto ecosystems that displayed false information to investors.

The SEC’s other lawsuit filed Tuesday, against another fake crypto trading platform referred to as CoinW6, alleges that unnamed participants in the scheme defrauded at least 11 investors out of $2.2 million between July 2022 and December 2023.

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