SEC Takes Action Against Crypto "Pig Butchering" Scams

On September 21, according to CoinDesk, the U.S. Securities and Exchange Commission (SEC) filed lawsuits against three individuals and five companies, accusing them of running cryptocurrency "pig butchering" scams. These lawsuits are reportedly the SEC's first enforcement actions against such scams, coming just a day before the U.S. House of Representatives Financial Services Committee is set to hold a hearing on "pig butchering" scams.

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