TechFlow reports, on September 21, according to CoinDesk, the U.S. Securities and Exchange Commission (SEC) has filed two lawsuits—the first ever targeting "pig-butchering" cryptocurrency scams—against three individuals and five companies. These scams involve building trust via social media to lure victims into investing in fraudulent crypto platforms before absconding with the funds. Gurbir S. Grewal, Director of the SEC’s Enforcement Division, warned that such fraud inflicts devastating harm on retail investors and the threat is rapidly escalating.
The first lawsuit targets the NanoBit platform, involving three U.S. residents: Jiajie Liu, 28; Fei Liao, 29; and Hua Zhao, 26. They are accused of posing as finance professionals in WhatsApp groups and deceiving at least 18 investors into investing nearly $1 million in cryptocurrency and fiat currency.
The second lawsuit involves the CoinW6 platform, with losses amounting to as much as $2.2 million affecting at least 11 victims. Unlike the NanoBit case, the perpetrators behind CoinW6 posed as “young, attractive professionals,” forming fake romantic relationships with victims on social media before manipulating them into making investments.
