$1.4M Seized In Cryptocurrency Scam Bust By Loudoun County Sheriff's Office

LOUDOUN COUNTY, VA — With cryptocurrency becoming an increasingly popular form of investment, residents should be aware of scams. The Loudoun County Sheriff's Office believes it made the biggest seizure of its kind —$1.4 million — from a cryptocurrency scam known as "pig butchering."

According to the U.S. Secret Service, a "pig butchering" scam typically involves a scammer gaining the trust of a victim and convincing them to invest in fake cryptocurrency initiatives. These scams can often begin with the scammer meeting a victim on an online dating website and developing a fake romantic relationship.

In the Loudoun County case, the sheriff's office said the victim received an unsolicited text message, which was addressed to a different person. However, the victim started communicating with the scammer on social media. The scammer encouraged the victim to look into cryptocurrency trading, guiding the victim to make an account on a trading website run by the scammer.

Following a test run to withdraw runs, authorities say the victim invested a significant amount of money in cryptocurrency. The scammer's website appeared to show significant returns on the investment. But when the victim tried to withdraw funds, they were told significant taxes had to be paid in advance. The sheriff's office says that is a strategy of the "pig butchering" scam, in which scammers tell victims they are achieving financial success to draw larger investments.

"This seizure sends a clear signal to bad actors that we will not allow our citizens to be taken advantage of and will do everything possible to get their money back," said Sheriff Mike Chapman in a statement. "If you commit fraud, especially a fraud of this magnitude, know that Loudoun County is coming for you."

Last year, the Loudoun County Sheriff's Office said its Financial and Cybercrime Unit investigated 107 cryptocurrency cases, with a collective loss over $13 million. That is an increase from 50 cryptocurrency investigations in 2023. All of the Financial and Cybercrime Unit's detectives are certified in blockchain investigations, which is a way to trace these types of transactions.

Victims of cryptocurrency scams who live in Loudoun County may report the crime to the Loudoun County Sheriff's Office.

The sheriff's office recommends the following tips to avoid cryptocurrency scams:

• Be skeptical of unsolicited messages: Treat any unexpected or misdirected communications with caution, especially if they lead to discussions about investment opportunities.
• Verify the legitimacy of investment platforms: Do not trust platforms or websites recommended by individuals you meet online without conducting thorough independent research.
• Avoid sending money to unknown individuals: Never transfer funds or provide financial information to people you have not met in person.
• Look out for red flags: Scammers often promise high returns with minimal risk. If it sounds too good to be true, it probably is.
• Consult with professionals: Seek advice from licensed financial advisors before making significant investments.