Kathy Jennings, the attorney general of Delaware, a United States State, has made a public statement surrounding a cryptocurrency scam.
Kathy has revealed that a summary order has been issued by the Department of Justice (DOJ) of the state. The particular order is against 23 individuals and entities involving cease and desist.
It is the Investor Protection Unit of the DOJ that has issued the summary order.
Pig Butchering Scam
The authorities have confirmed that the summary order has been issued in response to the “pig butchering scam”, which involves a scam in cryptocurrencies.
The particular category of scam has gained a lot of popularity in the entire cryptocurrency industry, which is extremely concerning.
The particular type of scam involves the grooming of investments over a period of time where they are led to believe they are making huge profits.
This way, the investors keep getting more attached and ambitious to generate more gains from their investments. The scammers play alongside the investors until they finally reach their target and make the investor invest a huge amount.
The investors only learn about the scam once it has taken place and the scammers are long gone.
The idea behind assigning such a name is it resembles the fattening of the pig before it is butchered. In this case, the investors are fattened with gains and profits, and finally, when they make huge investments, they lose everything.
The Delaware Authorities have come into Action
This is the first time an order has been issued against such entities and individuals involved or promoting such scams.
The state is attempting to take down such scammers while it is trying its best to save the interests of the investors. The state authorities are now determined to deal with such scammers and bring them down.
Their aim is to provide safety to their investors and make sure that no one tries to misuse their innocence.
The regulatory and law enforcement authorities in Delaware have decided to freeze the funds of such scamming platforms and individuals.
Why did the DOJ Come into Action
According to information, the locals of the Delaware State had raised multiple complaints against such scams.
The residents revealed that people got in touch with them through online channels asking them to invest in cryptocurrencies. They promised huge gains and profits against their investments.
The people who ended up investing in such programs and scams ended up losing their funds and investments.
As a result of the scam, thousands of people in Delaware lost billions, which was a huge shock for them.
The authorities have now taken action against multiple exchanges and individuals they have high suspicions of and are currently investigating the matter.