13-12-2023 (WASHINGTON) US authorities have seized digital currency amounting to approximately half a million dollars from an account belonging to a Chinese man implicated in a Reuters investigation into a crypto-investment fraud operation originating from Southeast Asia.
The fraud, known as pig butchering, involves scammers manipulating individuals they encounter online, convincing them to invest in fraudulent crypto schemes. The US Secret Service executed the seizure in June from an account registered in the name of Wang Yicheng, according to court documents filed in Massachusetts on November 21. At the time of the seizure, the crypto was valued at around $500,000.
The investigation, detailed by Reuters in a report last month, identified Wang as a businessman who had established connections with Thailand’s law enforcement and political elite while serving as the vice president of a Bangkok-based Chinese trade group. The article revealed that a crypto account linked to Wang had received over $90 million in recent years, with at least $9.1 million traced to a crypto wallet associated with pig-butchering scams.
One victim cited in the report claimed to have lost about $2.7 million in the scheme, while the recent court filing referred to another individual in Cambridge, Massachusetts, allegedly defrauded of approximately $478,000 worth of crypto. These funds were redirected to two crypto accounts, one of which was in Wang’s name.
The court filing affirmed that Wang’s account had received more than $90 million since its inception in 2020, with US authorities describing this level of activity as indicative of an account controlled by a criminal organization for money laundering purposes.
Despite multiple attempts to reach Wang for comment, he remained unresponsive. The head of the Thai police’s Cyber Crime Investigation Bureau declined to offer any remarks.
The trade group Wang represented, the Thai-Asia Economic Exchange Trade Association, distanced itself from the controversy, stating that it adheres to laws and regulations, disapproves of illegal activities, and affirmed that Wang’s business and personal matters were unrelated to the association. The group clarified that Wang is no longer associated with them.
The US court filing is part of a civil forfeiture action, seeking court approval to confiscate assets connected to the alleged crime. As of now, the US has not filed criminal charges in this case. Acting US Attorney Joshua Levy emphasized the adaptation of law enforcement to the evolving nature of cryptocurrency transactions, using civil forfeitures to recover funds lost in crypto fraud schemes.
