Four alleged perpetrators of a massive crypto investment scam face a possible prison sentence of up to 20 years after their indictment on Wednesday.
According to the U.S. Department of Justice (DOJ), Lu Zhang of Alhambra, California, Justin Walker of Cypress, California, Joseph Wong of Rosemead, California, and Hailong Zhu of Naperville, Illinois conspired to open shell companies and bank accounts to launder the proceeds. to wash. of a “pig slaughter” crypto investment scam and other fraudulent schemes.
Scammers involved in pig slaughter schemes send unsolicited messages to their intended victims, often on dating sites and social media, to build relationships with the aim of introducing supposed crypto investment opportunities on fraudulent sites and applications they operate.
The victims who were convinced to invest would initially see significant profits in their accounts, which might prompt them to send more money, but ultimately they would be unable to withdraw or get their money back.
The DOJ says Zhang, Walker, Wong and Zhu transferred the ill-gotten funds to domestic and international institutions in a scheme that involved at least 284 transactions and more than $80 million in victim losses. They also allegedly deposited $20 million of the ill-gotten money directly into their own bank accounts.
“A seven-count indictment was unsealed yesterday in Los Angeles, charging four individuals for their alleged roles in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds.”
All four are charged with conspiracy to commit money laundering, concealment of money laundering and international money laundering.
Zhang and Walker already appeared in federal court for the first time after their arrest on Wednesday.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on TweetFacebook and Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney