Delaware authorities suspend 23 entities linked with romance crypto scams

The Delaware Department of Justice has suspended the operations of 23 organizations linked with crypto romance frauds.

The Delaware Department of Justice’s Investor Protection Unit has suspended the operations of 23 organizations and people involved in “pig butchering” scams, which entail crypto romance frauds.

The eastern American state of Delaware has recently become the target of crypto romance scammers. The Delaware Department of Justice’s Investor Protection Unit has received complaints from residents reporting that they had been contacted by unknown persons encouraging them to purchase cryptocurrencies as investments.

Some locals who purchased digital assets through these scammers realized a sizable return on their initial investments. The fraudsters persisted in enticing them to raise bigger buys by promising profits would be just as good as before. Naturally, when people wanted to cash out their earnings, they were unable to withdraw their money, and their holdings fled from their accounts.

The Investor Protection Unit discovered 23 entities and individuals connected to such schemes through cooperation with a data analytics company, and they were given a summary order to cease and desist.

Why Romance scams are called pig butchering?

Attorney General Kathy Jennings also disclosed who was behind a classic crypto romance scam, often known as “pig butchering,” in which criminals approach lonely people online and try to attract them into a romantic relationship. The term “pig butchering” refers to the practice of deceivers “fattening” their prey before robbing them completely while they are under the influence of sentiments. Victims are then encouraged to invest in cryptocurrencies. Attorney General Jennings added:

“Today’s order takes a first step toward protecting Delaware investors from the pig butchering scam by freezing funds at risk from further transfer by the wrongdoers.”

This is not the first time America is witnessing such fraudulent schemes. In February during the Valentine’s week, FBI issued a warning against crypto romance scams, as TheCoinRise reported. 

Moreover, in July, a study by Bankless Times revealed that American people have lost around $185 million in romance crypto scams between January 2021 and March 2022.