I am Deepak Patel, a Blockchain Investigator and Crypto Lawyer with more than 17 years of experience in IT and cybersecurity and 7 years specializing in blockchain forensic investigations. Operating from www.deepakpatel.net, I collaborate with law enforcement agencies worldwide to uncover, trace, and recover digital assets lost to scams and cybercrime. This case study outlines the investigation into a large-scale “Pig Butchering” scheme, a scam that lured investors with promises of high returns, ultimately defrauding them of millions of dollars in cryptocurrency.

Victim Summary

Multiple victims from diverse backgrounds were targeted by scammers offering a “new token” via a professional-looking website. This purported “investment opportunity” required a minimum deposit of $10,000, with the promise of a 2% daily return. To incentivize growth, an additional 7% commission was offered for each new referral. Early investors received small payouts, creating the illusion of legitimacy—until the entire operation collapsed, leaving investors unable to withdraw their funds.

As more victims came forward, authorities received several formal complaints. My team was called in to uncover the scope of the scam, locate the stolen funds, and support enforcement agencies in recovering assets.

Details of Crime

• Nature of the Scheme:
• Multi-Level Marketing (MLM) Pitch: Investors were encouraged to recruit new participants, magnifying the pool of deposited bitcoins.
• Fictitious Token: A scam website displayed artificially manipulated “token prices,” fueling investor enthusiasm.
• Primary Lure: Guaranteed 2% daily returns on bitcoin investments, paired with a 7% referral bonus.
• Initial Payouts: Early-stage participants received small returns and bonuses, reinforcing trust in the platform.
• Total Investment: Collectively, victims invested substantial amounts of bitcoin, surpassing $10,000 per individual in many cases.

How the Crime Unfolded

• Recruitment and Deposits: The scammers used social media, direct messaging, and referral programs to entice investors. Hype around the coin’s “potential” drove new investors to deposit bitcoins.
• Minimal Returns: Early participants received daily returns as promised, enhancing the scheme’s credibility and prompting more referrals.
• Cash-Out Blocked: As the scheme matured, the operators blocked withdrawals, citing “technical upgrades” or “regulatory issues.”
• Disappearance of Operators: Once the scammers collected enough bitcoin, they shut down the website and communication channels.

Investigation Methodology

• Case Intake: Victims lodged formal complaints with local law enforcement, who brought my team on board due to our specialized blockchain expertise.
• Digital Trail Analysis: Using our proprietary blockchain tracing tools, we followed the movement of the stolen bitcoins through multiple wallets and identified suspicious addresses that converted significant amounts into USDT.
• Exchange Tether Collaboration:
  • We reached out to Tether Limited, the entity behind USDT, to place a freeze on addresses holding illicit funds.
  • Simultaneously, we gathered compliance data from multiple exchanges to pinpoint additional culprits behind the laundering.
• Legal Coordination: As a Crypto Lawyer, I coordinated with the relevant judiciary to obtain freeze orders, enabling Tether to effectively halt further unauthorized withdrawals.

Outcome

• Asset Freezing: A $7.5 million chunk of the stolen funds was frozen in USDT form, preventing further laundering.
• Criminal Apprehension:
  • Two principal promoters of the scam were arrested on charges of fraud, money laundering, and conspiracy.
  • Authorities continue to pursue additional suspects who facilitated the laundering process.
• Recovery Efforts:
  • Investigations are ongoing to recover any remaining illicit proceeds.
  • Victims are being assisted through the legal framework for possible restitution.
• Lessons Learned: Scammers exploit social proof and MLM tactics to gain quick investor trust.
• Timely intervention and swift collaboration with Tether Limited and exchanges are crucial in preventing large-scale losses.

Conclusion

This Pig Butchering Token Scam underscores the evolving nature of crypto fraud, highlighting how scammers leverage Ponzi-like structures, sophisticated marketing, and false promises of extraordinary returns. By combining proprietary blockchain tracing methodologies with legal expertise, we successfully identified the flow of stolen assets, froze $7.5 million in USDT, and facilitated the arrest of two main conspirators.

If you are a law enforcement agency or an individual seeking expert crypto forensic investigations and incident response services, feel free to reach out at www.deepakpatel.net. Our mission is to ensure justice for victims, disrupt illicit networks, and bring scammers to account.

Disclaimers

• Legal Disclaimer:s This case study is based on an actual incident; however, certain details have been altered or omitted to protect ongoing investigations and the privacy of those involved. The information herein is intended for educational and illustrative purposes only and does not constitute legal advice.
• Proprietary Information: All information contained in this document is the property of Deepak Patel and www.deepakpatel.net. No part of this publication may be reproduced or distributed without prior written consent.
• No Guarantee of Outcome: While our methods have proven successful, each case is unique, and outcomes may vary.
• Reproduction Restrictions: Unauthorized use, disclosure, or duplication of this material is prohibited without explicit permission.

For further information or inquiries: Deepak Patel

Blockchain Investigator and Crypto Lawyer

www.deepakpatel.net