A Naperville man is one of four individuals indicted on federal costs linked to the laundering of proceeds from a cryptocurrency investment rip-off, in keeping with the U.S. Division of Justice.
Hailong Zhu, 40, has been charged with conspiracy to commit cash laundering, concealment cash laundering and worldwide cash laundering, a information launch stated. Dealing with the identical costs are California residents Lu Zhang, of Alhambra; Justin Walker, of Cypress; and Joseph Wong, of Rosemead.
The case is being prosecuted by the U.S. Lawyer’s Workplace in Los Angeles.
“Zhang, Walker, Wong and Zhu allegedly conspired to open shell corporations and financial institution accounts to launder sufferer proceeds of cryptocurrency investment scams — also referred to as ‘pig butchering’ — and different fraudulent schemes,” the discharge stated.
“They allegedly transferred the funds concerned in the fraud schemes to home and worldwide monetary establishments. The general fraud scheme in the associated pig-butchering syndicate concerned at the least 284 transactions and resulted in greater than $80 million in sufferer losses.”
Pig butchering, a time period derived from a foreign-language phrase used to described the crimes, is a apply in which scammers meet victims by social media, courting companies, or unsolicited telephone calls or messages, the discharge stated.
By means of the relationships they develop with them, the scammers persuade the victims to take a position in a enterprise utilizing cryptocurrency by introducing them to different individuals in the scheme.
“As soon as funds are despatched to scammer-controlled accounts, the investment platform typically falsely exhibits vital good points on the purported investment, and the victims are thus induced to make further investments,” the discharge stated. “Finally, the victims are unable to withdraw or get well their cash, typically ensuing in vital losses for the victims.”