Cryptocurrency Recovery in Alabama
In a recent crackdown, regulators in Alabama have successfully recovered over $125,000 in cryptocurrency from individuals who fell prey to intricate scams known as “pig butchering.” These fraudulent schemes collectively caused losses amounting to nearly $580,000 for two victims.
According to a statement released on Friday by the Alabama Securities Commission (ASC), a resident from Baldwin County received $53,227.81 back after losing roughly $185,000, while $73,927.68 was retrieved for an Etowah County victim who had been defrauded of $395,000.
Nature of the Scams
The scams often start innocently on dating apps and messaging platforms, preying on victims’ emotions and exploiting the anonymity afforded by digital currencies. The ASC highlights that these scams have seen a rapid rise as they become more sophisticated, with criminals taking advantage of cryptocurrency’s irreversible transactions and international characteristics, stealing billions from unsuspecting individuals across the United States.
“The ASC continues to see an increase in cryptocurrency fraud, including ‘Pig Butchering.’ Most cyber crimes originate overseas and transactions are instant, complicating efforts to catch the criminals or recover lost assets.” – Amanda Senn, ASC Director
Case Studies
In one case from Baldwin County, the victim connected with the perpetrator via the Bumble app. Over a span of three months, she was convinced to invest more than $185,000 in a cryptocurrency trading platform that ultimately turned out to be a ruse, with the funds redirected to a wallet belonging to the scammer. When she attempted to access her funds—believing her investment had grown to over $443,000—she was told she needed to transfer more cryptocurrency to cover fabricated taxes. This request raised suspicions, leading her to reach out to authorities.
Meanwhile, the victim from Etowah County was lured in by a WhatsApp advertisement, leading them to invest $395,310 in a bogus platform that falsely claimed to be associated with the reputable Charles Schwab and was purportedly registered with the SEC. Concern was raised when Wells Fargo Advisors reported unusual activity connected to their withdrawal attempts.
Federal Response
On a broader scale, federal authorities have intensified their efforts against the networks that facilitate such schemes. Earlier this year, the U.S. Treasury sanctioned Funnull Technology Inc. from the Philippines and its Chinese administrator Liu Lizhi for their involvement in pig butchering and other cryptocurrency frauds that swindled Americans of over $200 million.
Reporting and Trends
The ASC stresses the importance of promptly reporting suspected fraud, as delay can significantly hinder recovery efforts. Recent data from Chainalysis indicates that crypto scams globally amassed around $9.9 billion in 2024, with pig butchering schemes representing a staggering 33.2% of this revenue. Notably, there has been a 40% increase in pig butchering revenue, while the number of deposits soaring by 210% year-over-year suggests a shift towards shorter cons as criminals seek to widen their pool of victims instead of nurturing long-term scams.
