The Terrifying Reality of Crypto Scams Victims Forced into Human Trafficking

A Harrowing Tale of "Pig Butchering": The Dark Side of Cryptocurrency Scams

The chilling reality of cryptocurrency scams, often termed "pig butchering," is causing devastating consequences for victims across the Bay Area and beyond.

This term, a disturbing metaphor, compares the initial phase of gaining the victims' trust to fattening pigs before their slaughter.

The analogy captures the essence of this insidious scam, where trust is built only to be betrayed, leaving victims financially devastated.

Former Scientist’s Retirement Bliss to Financial Ruin

Warren Dang, a former scientist with a 30-year career in big pharma and a master's degree, found himself ensnared by this cruel scam.

Dang lamented,

"I was angry. I was angry for the last two years."

Despite his advanced education, Dang was lured by enticing investment offers on LinkedIn.

He recounted the messages he received,

"Hey, I've got this great investment, here's some numbers, look at the statistics on these."

He started by investing small amounts like $5,000 or $10,000, seeing returns of about 20%.

Encouraged by these gains, he poured more money into various platforms, ultimately investing his 401(k) savings.

Unfortunately, the platforms crumbled one after another — his account was dissolved, the scammer vanished, and finally, he couldn't withdraw his money.

The FBI reported a staggering rise in investment scam losses, escalating from $3 billion in 2022 to $4.5 billion in 2023.

James C. Barnacle Jr., deputy assistant director of the FBI’s Criminal Investigative Division, explained,

"Fraudsters are going to fatten up the victims by enticing them to put more money into an investment, and then they're going to slaughter them by walking away and stealing their money."

Thai Massage Therapist’s Online Romance Turned Tragic

Shai Plonski, a single dad and Thai massage therapist, experienced a heart-wrenching betrayal.

He met "Sandy" online, whose poetic charm led him to seek her investment advice.

Plonski initially invested $2,000, making $200 quickly.

Encouraged by this success, he increased his investment significantly.

"I made about $300 in a few minutes. We did probably three or four trades that first night."

However, when scammers flagged his account and demanded a $10,000 refundable deposit to withdraw his funds, Plonski realised he had been duped.

His friends helped him recognise the scam, but the emotional and financial damage was profound.

Plonski discovered that the woman he thought he was communicating with had no connection to the scam; her photos had been stolen and misused for fraudulent purposes.

She herself had been contacted by victims seeking refunds.

Plonski reflecting on the scam's sophisticated tactics,

"They’re very good at building trust. They know how to do that,"

New Job Leads to Abduction and Forced Scamming

The scam's cruelty extends beyond financial loss to human trafficking.

"Sara," who spoke to ABC News under a pseudonym, shared her harrowing experience of being kidnapped.

Originally seeking a customer service job in Bangkok, she was instead abducted and taken to a compound in Myanmar.

There, her passport was confiscated, and her phone's SIM card was destroyed.

Photo of the outside compound ‘Sara’ managed to capture before her passport and phone’s SIM card were confiscated.

She recalled about her initial observations,

"When I got there, the first three days they couldn't tell me what I was doing. All I could see were people that were stressed. They were not happy, and they just had their eyes glued on the computer."

Forced to pose as an Asian woman, Sara worked gruelling hours under duress.

"I used to work for like 20 hours. I wanted to make an honest living, be an honest citizen and here I am now. I'm a prisoner forced to do things that I don't want to do."

She was trapped for nine months until a fellow victim, who had managed to escape, helped pay her ransom and facilitated her release.

Sara’s harrowing escape from this nightmare highlights the inhuman side of the crypto scam industry.

An Overwhelming Challenge: Law Enforcement Struggles

Law enforcement agencies are grappling with the enormity of these crimes. Santa Clara County Deputy District Attorney Erin West described the situation as one of relentless vigilance against scammers.

She noted,

"Unfortunately, we find ourselves in a period of time that we need to be weary of anyone that comes into our circle."

The complexity of tracking and recovering funds is compounded by international barriers.

Barnacle said,

"It's very difficult on the backend when money goes to China and foreign countries, for us to recover the money and for us to necessarily work with the different law enforcement agencies in some countries that maybe the United States doesn't have the best diplomatic relations with."

Victims like Warren Dang and Shai Plonski face the painful reality of lost savings and shattered trust.

Dang, reflecting on his ordeal, has come to terms with the fact that he may never recover his $2.5 million.

He exclaimed,

"I've come to the realisation I'm never going to get that $2.5 million back, so that's why I went back to work, as a consultant."

Plonski also found himself unable to recover his losses, while Sara’s compound continues to operate under grim conditions.

For those who fall prey to such scams, law enforcement officials advise reporting the crime to both local authorities and the FBI Internet Crime Complaint Center (IC3).

The battle against these ruthless scammers continues, leaving a trail of financial and emotional devastation in its wake.