TL;DR
- US prosecutors have charged a Vietnamese national with money laundering linked to alleged cryptocurrency “pig slaughter” schemes.
- Prosecutors say the wallets controlled by the defendant received approximately $53.3 million related to fraud schemes targeting American victims.
- One victim allegedly transferred around $16 million after being directed to a fake cryptocurrency investment platform.
US prosecutors have charged a Vietnamese national over an alleged cryptocurrency fraud network that moved more than $53 million through wallets linked to “pig slaughter” scams.
Truong Nguyen Phan, 37, faces two counts of money laundering in the Western District of Missouri after his appearance in federal court in Los Angeles.
The charges are allegations and were not proven at trial.
One victim allegedly lost about $16 million
According to the US Attorney’s Office, the case stemmed from an investigation into a victim who believed she was investing through a cryptocurrency platform called Triangle.
Prosecutors say the victim transferred approximately $16 million in cryptocurrencies during the summer of 2024 after developing trust with people involved in the scheme.
The victim was ultimately unable to withdraw the supposed investment.
Investigators then linked the recipient’s infrastructure to other suspicious wallets and reports from additional American victims who described similar experiences.
Authorities say the cryptocurrency wallets controlled by Fan received approximately $53.3 million in assets associated with the online fraud schemes, and then transferred approximately $53.2 million onward.
The complaint alleges that those transactions were part of the laundering of fraudulently obtained funds.
Cryptocurrencies make money transferable, but also traceable
Pig slaughter schemes generally involve scammers establishing a relationship with the victim over time before directing them toward a fake investment opportunity.
Cryptocurrency is often used because large amounts can be transferred quickly across borders without relying on traditional bank transfer.
The blockchain records themselves can become evidence later.
Wallet addresses, transaction history, and transfers between exchanges can give investigators a trail that is difficult to completely erase.
This does not make recovering money easy.
Assets can move across multiple wallets, bridges, privacy tools, and exchanges before law enforcement is aware of an incident.
The Justice Department says the FBI investigated the case.
Van is presumed innocent unless proven guilty, and a criminal complaint in and of itself is not proof of guilt.
However, the numbers show the scale to which these fraud networks can reach.
One victim allegedly lost about $16 million.
Prosecutors say the wallets were linked to a defendant who was transacted for more than three times that amount.
Cryptocurrency scams are becoming increasingly industrial.
Law enforcement response is becoming more reliant on blockchain technology as well.
This article was written by News Desk and edited by Samuel Ray.