US Justice Department Cracks Down on 'Pig Butchering' Crypto Scams

According to Bloomberg, the US Justice Department has announced a crackdown on scams commonly known as 'pig butchering,' where the organization exploited more than 70 victims by creating non-existent crypto trading platforms. The announcement came a day after Tether, a stablecoin issuer, froze $225 million worth of its tokens. A Tether spokesperson did not immediately respond to questions on whether the token freeze was connected to the Justice Department's announcement. 'Pig-butchering' is a scheme in which scammers fatten up a victim's trust over time with a pretend romantic or personal relationship and made-up investment gains, before taking the money and vanishing. The Financial Crimes Enforcement Network (FinCEN), an arm of the US Treasury, issued a warning this year over the prevalence of such crimes, which has led to billions in losses among US victims. Stablecoins like USDT are cryptocurrencies that aim to maintain a one-to-one value with more stable assets like the US dollar. They can be used by traders to buy other tokens or store wealth in digital wallets, before being cashed out for real money on exchanges.