US DOJ Charges Zhang and 3 Others For $80 Million Scam
Lu Zhang, Justin Walker, Hailong Zhu, and Joseph Wong charged by U.S. DOJ for laundering $80M from crypto scams, using 'pig butchering' scheme.
The U.S. Justice Department has charged 4 individuals for laundering over $80 million from crypto scams, these individuals namely, Lu Zhang, Justin Walker, Hailong Zhu, and Joseph Wong. These individuals, based in California and Illinois, used complex schemes to launder money from fraudulent crypto activities.
They fake romantic interests on social media to gain trust and deceive victims into investing in bogus crypto platforms, this scheme is called a 'pig butchering scam’ as they feed the victim with emotions and romantic attention till they get trusted enough to make a move. Then they trick the victims into investing in a false crypto platform, these platforms, which are also controlled by the scammers, show false profits to entice more investments, leading to significant losses for the victims.
Zhang, Walker, Wong, and Zhu tricked people in at least 284 transactions, laundering about $20 million through bank accounts linked to them.
Zhang and Walker have been arrested and could face up to 20 years in prison if found guilty. The U.S. is ramping up its efforts to combat crypto romance scams; they also seized about $112 million in related cases earlier this year.
