SEC Takes Action Against Crypto Scammers

The U.S. Securities and Exchange Commission (SEC) has taken its first-ever action against crypto "pig butchering" scammers, charging two allegedly "fake crypto asset trading platforms" named NanoBit and CoinW6 with defrauding investors of nearly $3.2 million.

Fraudsters Posed as Attractive Professionals

The SEC alleges the scammers contacted investors on social media, posing as "young, attractive professionals" to pursue romantic relationships and gain their trust before convincing them to open accounts on the fake exchanges with promises of high daily returns.

Investors Blackmailed for Additional Funds

Investors who tried to withdraw their funds were allegedly met with demands for additional payments for "taxes and fees" or were blackmailed with threats that their private romantic conversations would be leaked to family and friends.

SEC Warns of Increasing Threat of Relationship Scams

The SEC's enforcement director Gurbir Grewal warned that the threat of such "relationship investment scams" is "increasing rapidly as these scams become more popular with fraudsters," urging investors to be on heightened alert about investments promoted by strangers online.

Historic First Action Against Crypto 'Pig Butchering'

These charges mark the SEC's first enforcement actions alleging these types of "pig butchering" scams, which involve building trust with victims over time before eventually defrauding them.

Source: https://cointelegraph.com/news/sec-sues-fake-crypto-exchanges-first-pig-butchering-scam-case

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