The post SEC Busts ‘Pig Butchering’ Crypto Scams, Millions Lost! appeared on BitcoinEthereumNews.com.

The SEC takes action against crypto scams, targeting fake exchanges that defrauded investors of millions. Pig Butchering scams use social media to build trust, then lure victims into fake crypto investments. Recently, the Securities and Exchange Commission (SEC) has filed the first-ever litigation targeting the renowned “Pig Butchering” crypto scams, revealing fraudsters’ deceptive tactics used to prey on naïve victims. This type of scam, which has been on the rise in recent years, uses social media platforms to establish bogus relationships and gain victims’ trust, eventually convincing them to invest in fraudulent crypto platforms before stealing their assets. The SEC’s action targets three individuals and five firms linked to two fraudulent cryptocurrency exchanges, NanoBit and CoinW6, which collectively defrauded investors out of about $3.2 million. The US SEC has filed two lawsuits for the first time against the “Pig Butchering Scams” cryptocurrency scam, suing three individuals and five companies. This type of scam uses social media to establish trust relationships, induce victims to invest in fake crypto platforms and… — Wu Blockchain (@WuBlockchain) September 21, 2024 SEC Landmark Move Against Social Media Crypto Scammers The actions are a significant step forward in the fight against cryptocurrency fraud, as it is the first time the SEC has initiated enforcement action, especially against Pig Butchering frauds, as we previously reported. This type of fraud includes winning the victim’s trust via various social media networks, with scammers frequently pretending to be financial specialists or romantic partners to establish a sense of legitimacy. In the instance of CoinW6, scammers pretended to be “young, attractive professionals,” engaging in long-term romantic relationships with potential victims via sites such as LinkedIn, Instagram, and WhatsApp. The victims were then duped into investing in CoinW6, believing they would earn large daily returns through bogus staking, mining, and yield farming…

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Filed under: News - @ September 22, 2024 10:10 am