Missouri case alleges laundering of cryptocurrency fraud proceeds

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A Vietnamese national faces federal money laundering charges in connection with an alleged cryptocurrency “pig butchering” scheme that authorities say defrauded a victim of millions of dollars.

Trung Nguyen Van, 37, was charged in the Western District of Missouri in a two-count criminal complaint alleging money laundering. The complaint was unsealed after Van made his initial appearance in federal court in Los Angeles the previous day.

Pig butchering schemes are cryptocurrency and investment fraud operations in which scammers establish relationships with victims, gain their trust, and persuade them to place money into fraudulent investments. Authorities say the schemes have generated billions of dollars in losses and affected millions of Americans.

The fraud often begins when a victim meets someone through an online dating service or receives an unsolicited message through social media, text messaging, or another messaging application. Communications may eventually develop into what appears to be a romantic relationship.

The scammer then directs the victim toward what is presented as a cryptocurrency investment opportunity. Early investments may appear to produce substantial profits, encouraging the victim to transfer increasingly larger amounts of money. The investments and reported returns are fraudulent, and victims ultimately can lose the money they transferred.