SAN FRANCISCO (KGO) — San Francisco Bay Area victims of a cryptocurrency scam, often referred to as a “pig slaughter,” are bravely sharing their stories in an effort to warn others.
The name “pig slaughter” comes from an analogy comparing the initial phase of gaining the victims’ trust to the fattening of pigs before slaughter.
Victims are often highly educated and trusting. It can cost them their entire savings in a matter of days. Some perpetrators of these crypto scams are also victims, kidnapped and forced to participate.
Warren Dang was enjoying his retirement until his life savings were stolen.
“I was angry. I had been angry for two years,” Dang said.
Warren worked for 30 years as a scientist in a large pharmaceutical company. He holds a master’s degree.
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Despite his education, he says he trusted people who contacted him on LinkedIn with various tempting investments.
“Hey, I have this great investment, here are some numbers, look at the stats on these,” Dang said.
“So you invest a little bit, maybe $5,000 or $10,000 at a time, and your return is about 20%. Then they get you to invest more and more money until they take my 401(k). Week after week, each of these platforms disintegrated. The first time my account was dissolved, the second time the scammer ran away, and the third time I couldn’t even get my money back,” he said.
The FBI told ABC News that losses from investment scams have increased from $3 billion in 2022 to $4.5 billion in 2023.
“The fraudsters will fatten victims by getting them to invest more money, and then they’ll murder them by going away and stealing their money,” said James C. Barnacle Jr., deputy assistant director of the FBI’s Criminal Investigation Division.
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Shai Plonski, a single father and Thai massage therapist, met “Sandy” online, who he says broke his bank and his heart.
“She spoke in a very poetic way that spoke to me and that’s how we started talking,” Plonski said.
It was Plonski who finally asked “Sandy” for investment advice. His initial investment was $2,000.
“I made about $300 in a few minutes. We probably did three or four trades that first night,” Plonski said.
He even managed to withdraw some money at “Sandy’s” suggestion to celebrate. There was no problem until…
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“I decided to invest all my savings,” Plonski said.
Shortly after, scammers told him his account had been flagged and he would have to pay a refundable $10,000 deposit to withdraw his money again.
“I really thought it was a hoax,” Plonski said.
His friends helped Plonski realize he was being scammed.
“You know, my heart just broke,” Plonski said.
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It’s unclear who exactly he was talking to, but ABC7 News tracked down the woman Plonski thought he was communicating with in the photos. The real woman in the photos has nothing to do with what happened to Plonski, but she says she knows her photos have been used in scams for years. She’s even received text messages from victims asking for their money back.
“They are very good at building trust. They know how to do it,” Plonski said.
Santa Clara County Deputy District Attorney Erin West has jumped into the fight against cryptocurrency scammers.
“Unfortunately, we find ourselves in a time where we have to be wary of anyone who comes into our circle,” West said.
It’s not just people who lose their savings who are being kidnapped and forced to defraud others.
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That’s what happened to “Sara,” who agreed to speak to ABC News, under a pseudonym and with her voice and face disguised.
She was living in South Africa when she applied for a new job she thought she would find in Bangkok.
“Well, I expected to become a customer service advisor,” “Sara” said.
Instead, “Sara” was kidnapped and taken to a compound in Myanmar where her passport was confiscated and her mobile phone SIM card destroyed.
“When I arrived, the first three days, they couldn’t tell me what I was doing. All I saw was stressed people. They weren’t happy and they had their eyes glued to the computer,” she said.
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“Sara” said she was asked to play a role.
“I actually had to learn how to be an Asian woman,” “Sara” said.
“I used to work 20 hours a day. I wanted to earn an honest living, to be an honest citizen, and this is where I am today. I am a prisoner forced to do things I don’t want to do,” she said.
“I feel for the people who are victims of this trafficking and who are getting scammed on the other side,” Plonski said.
Crypto-bribery requires law enforcement and prosecutors to work around the clock.
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“It’s a very widespread phenomenon and it affects a lot of people,” West said.
“It’s very difficult for us behind the scenes to recover the money when the money goes to China and foreign countries and necessarily working with the various law enforcement agencies in some countries that the United States may not have the best diplomatic relations with,” Barnacle said.
“I realized I was never going to get that $2.5 million back, so I went back to my job as a consultant,” Dang said. “And I owe $600,000 in back taxes to the state and federal authorities.”
“No, I definitely couldn’t get it back,” Plonski said.
“Sara” said the complex where she worked still operates with tight security and poor working conditions.
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“I escaped that,” said “Sara.”
A battle continues, with wounds that extend beyond broken trust and shattered economies.
“I don’t want to lose my heart. I don’t want to lose my love for life, for the world and for the way I live my life. I don’t want to become cynical,” Plonski said.
If you are a victim of this type of scam, law enforcement officials advise you to file a complaint with your local police department and the FBI Internet Crime Complaint Center (IC3).
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