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Alleged Crypto Investment Scam Worth $80M Sees Four People Charged With Money Laundering in U.S.

The four allegedly obtained the money through so-called pig-butchering and other fraudulent schemes.

By Jamie Crawley
AccessTimeIconDec 14, 2023 at 4:20 p.m. UTC
Updated Mar 8, 2024 at 6:41 p.m. UTC
(Alexander Grey/Unsplash)
(Alexander Grey/Unsplash)
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A scheme for allegedly laundering the proceeds of crypto investment scams has resulted in charges against four people in Los Angeles, the U.S. Department of Justice (DOJ) said on Thursday.

The four allegedly opened shell companies and bank accounts to launder more than $80 million of victims' funds obtained through so-called pig butchering and other fraudulent schemes, the DOJ said.

In "pig butchering" scammers contact their victims through dating websites or social media, gaining their trust before eventually pitching a money-making opportunity involving cryptocurrency.

The individuals involved were charged with conspiracy to commit money laundering, concealment money laundering and international money laundering.

Two of those charged, Lu Zhang of Alhambra, Calif. and Justin Walker of Cypress, Calif. face up to 20 years in prison if convicted, the DOJ said.

Read More: Tether Worth $9M Tied to 'Pig Butchering' Scams Is Seized by U.S. DOJ

Edited by Sheldon Reback.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jamie Crawley
Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

Follow @JamieCrawleyCD on Twitter

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