Four Individuals Accused of Money Laundering in $80M Alleged Crypto Investment Scam Case in the U.S

Four individuals in Los Angeles are now under legal scrutiny, facing charges related to their alleged participation in a scheme designed to launder funds obtained from crypto investment scams, as reported by the U.S. Department of Justice (DOJ).

The accused individuals purportedly acquired the illicit funds through deceptive practices, employing tactics such as the "pig-butchering" method. The DOJ revealed on Thursday that these four individuals established shell companies and bank accounts to launder an excess of $80 million, which they had acquired from victims through pig butchering and other fraudulent schemes.

In pig-butchering scams, perpetrators initiate contact with potential victims on dating websites or social media platforms, gradually building a sense of trust. Subsequently, they present victims with what appears to be a lucrative investment opportunity in the realm of cryptocurrency.

The charges levied against the accused encompass conspiracy to commit money laundering, concealment money laundering, and international money laundering, reflecting the severity and breadth of their alleged illicit activities.

Lu Zhang, a resident of Alhambra, Calif., and Justin Walker, residing in Cypress, Calif., could potentially face a maximum sentence of up to 20 years in prison if convicted, according to statements from the DOJ. This legal case serves as a stark reminder of the ongoing efforts to combat fraudulent activities within the cryptocurrency space, underscoring the serious legal repercussions individuals may encounter for participating in such schemes.

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