In a significant development, the United States has taken possession of digital currency valued at approximately $500,000 from an account associated with a Chinese individual implicated in a Reuters investigation into a crypto-investment fraud originating from Southeast Asia.
The seized funds were reportedly part of a crypto-investment scam referred to as “pig butchering,” wherein fraudsters exploit unsuspecting individuals they encounter online, convincing them to invest in fraudulent crypto schemes.
The U.S. Secret Service executed the seizure from an account registered in the name of Wang Yicheng in June, as detailed in a document filed by U.S. authorities in federal court in Massachusetts. At the time of the seizure, the cryptocurrency held in the account amounted to around $500,000. The investigation revealed that funds initially pilfered from a victim in Massachusetts were traced to Wang’s account, according to the filing dated Nov. 21.
A Reuters article published last month identified Wang as a businessman who had cultivated relationships with members of Thailand’s law enforcement and political elite while serving as the vice president of a Bangkok-based Chinese trade group. The Nov. 23 report elaborated on a crypto account in Wang’s name, which received over $90 million in recent years, with at least $9.1 million linked to pig-butchering scams, according to U.S. blockchain analysis firm TRM Labs.
The report highlighted instances of individuals being scammed, including a California man who allegedly lost about $2.7 million. The recent U.S. court filing cited another example, a resident of Cambridge, Massachusetts, who was purportedly cheated of approximately $478,000 worth of cryptocurrency, diverted into two crypto accounts, one of which was in Wang’s name.
Details provided in the U.S. court filing, including the account holder’s identity, location, last four digits of the account number, and the corresponding crypto wallet address, align with the information highlighted in the Reuters report.
U.S. authorities asserted that Wang’s account had received more than $90 million since its inception in 2020, indicative of an account controlled by a criminal organization for laundering stolen funds, according to an affidavit by U.S. Secret Service Special Agent Heidi Robles.
Wang has not responded to requests for comment, and the head of the Thai police’s Cyber Crime Investigation Bureau declined to comment.
The trade group Wang represented, the Thai-Asia Economic Exchange Trade Association, distanced itself from Wang, stating that his business and personal affairs were unrelated to the association. The U.S. court filing is part of a civil forfeiture action, and as of the November filing, no criminal action has been initiated by the U.S. Attorney’s Office in Massachusetts.
Acting U.S. Attorney Joshua Levy emphasized the utilization of civil forfeitures to recover funds stolen via crypto fraud schemes, acknowledging the adaptability of law enforcement in addressing cryptocurrency transactions.