A Chinese man, who was the subject of a investigation into crypto-investment fraud in Southeast Asia, has had digital currency valued at around $500,000 seized by US authorities.
The scam, known as pig butchering, involved manipulating people into investing in fraudulent crypto schemes through online interactions. The US Secret Service traced stolen funds from a victim in Massachusetts to an account under the name Wang Yicheng and confiscated the crypto in June.
In a recent article, Reuters revealed that Wang, a businessman, had cultivated connections with influential figures in Thailand's law enforcement and political circles while holding the position of vice president in a Chinese trade group based in Bangkok. The article, published on November 23rd, provided evidence and transaction records indicating that a cryptocurrency account under Wang's name had received over $90 million in the past few years. Reuters reported that at least $9.1 million of these funds originated from a cryptocurrency wallet associated with fraudulent schemes involving pig butchering, as confirmed by blockchain analysis firm TRM Labs.
The report drew attention to a case involving a man from California, who claimed that he had been scammed out of approximately $2.7 million. According to the report, the man sent money to crypto wallets that directed the funds into an account registered in Wang's name. Another example was presented in a recent court filing in the US, involving a resident from Cambridge, Massachusetts. Allegedly, this individual was deceived out of approximately $478,000 worth of cryptocurrency, which was redirected to two crypto accounts, one of which was in Wang's name.
The specific account details provided in the court filing, such as the account holder's information, location, the last four digits of the account number, and the corresponding crypto wallet address, match the details of the Wang account highlighted in the report.
According to an affidavit by U.S. Secret Service Special Agent Heidi Robles, U.S. authorities said that an account under Wang's name had received over $90 million since it was established in 2020. Robles described this level of activity as a sign that the account was being controlled by a criminal organization for the purpose of laundering stolen funds.
Requests for comment, Wang did not provide any response. The head of the Thai police's Cyber Crime Investigation Bureau declined to comment as well.
The trade group that Wang represented, known as the Thai-Asia Economic Exchange Trade Association, said that it adhered to laws and regulations and did not endorse illegal activities. They emphasized that Wang's business and personal matters were unrelated to the trade association, reiterating that he is no longer affiliated with the group and they have severed contact with him.
According to a letter sent by the Thai-Asia group to Reuters on December 4th, Wang had left their board more than three months ago. This departure was due to Wang's failure to pay the group's new membership fees and for unspecified "personal reasons." The group conducted background checks on Wang both during his initial application for membership and after Reuters' November 23rd report and found no criminal record.
The U.S. court filing, which is part of a civil forfeiture action, aims to obtain court approval to seize assets that are believed to be connected to a crime. The U.S. Attorney's Office in Massachusetts clarified that no criminal charges have been filed in relation to the case when they made the filing in November.
Acting U.S. Attorney Joshua Levy from Massachusetts informed Reuters that his department has been employing civil forfeitures to recover funds that were stolen through cryptocurrency fraud schemes. He said that Even though cryptocurrency transactions may appear difficult to trace, law enforcement is adjusting and progressing.
According to Reuters.
