Mars Finance News, September 21: SEC Sues Individuals and Companies for Allegedly Operating "Pig Butchering" Scams

The US Securities and Exchange Commission (SEC) has filed lawsuits against three individuals and five companies, accusing them of operating "pig butchering" scams. These two lawsuits, filed on Tuesday, mark the first time the SEC has taken enforcement action against this type of crypto scam, coming just one day before the US House Financial Services Committee is set to hold a hearing on "pig butchering" scams.

Gurbir S. Grewal, Director of the SEC's Enforcement Division, stated in a press release: "Romance scams, including those that involve investments in crypto assets, pose significant risks to retail investors, and this threat is rapidly increasing as these scams become more popular with fraudsters. In these two cases, we allege that the fraudsters created a sham crypto ecosystem and presented investors with false information. Our charges serve as a reminder to the public to be highly cautious about investment opportunities that are promoted by strangers on social media."