U.S. Department of Justice: Four individuals charged with alleged massive fraud and money laundering in cryptocurrency investments, with victims losing over $80 million

ChainCatcher news, the U.S. Department of Justice disclosed that Lu Zhang, Justin Walker, Joseph Wong, and Hailong Zhu have been charged with money laundering related to cryptocurrency investment fraud. According to court documents, the individuals are accused of conspiring to set up shell companies and bank accounts to launder funds from victims of cryptocurrency investment scams and other fraudulent schemes.

They transferred funds to domestic and international financial institutions, with the overall fraudulent scheme involving at least 284 transactions, resulting in losses of over $80 million for victims, and more than $20 million of victim funds directly deposited into bank accounts associated with the defendants. The U.S. Secret Service's Global Investigative Operations Center is investigating the case.

According to court documents, the "pig butchering" fraud scheme involves scammers seeking victims through dating services, social media, or unsolicited messages or calls. Scammers build relationships with victims and gradually gain their trust, ultimately introducing the idea of using cryptocurrency for business investments.