A California resident has taken legal action after falling victim to a $2.1 million Bitcoin theft he attributes to a sophisticated pig butchering scam operated by a crime syndicate based in Southeast Asia.
On October 3, Hector Gustav Gutierrez filed a lawsuit against Yan Shi Zhang, also known as “1,” in the District Court of California, alleging a significant loss of 33 Bitcoin (BTC), equating to approximately $2.1 million USD.
Gutierrez’s attorney described how his client became ensnared in a pig butchering scam centered on fraudulent cryptocurrency investments traced back to Southeast Asia. The alleged crime syndicate reportedly created counterfeit websites mimicking legitimate crypto exchanges to attract victims, simulate trading, and illicitly extract funds from investors.
“Thousands have lost their entire life savings, including our client, who is now struggling to cover basic living expenses after dedicated years of hard work to build his savings,” the attorney stated.
Gutierrez connected with Zhang’s niece via LinkedIn in September 2023, after which Zhang offered to mentor him in cryptocurrency trading.
According to Gutierrez, Zhang claimed to have affiliations with an investment firm associated with a well-known crypto exchange and showcased examples of high returns from his trading success.
Under Zhang’s influence, Gutierrez believed he was signing up for an authentic account on the U.S.-based cryptocurrency exchange Kraken, unaware it was a fraudulent site.
In a tragic turn, Gutierrez invested all his life savings and retirement funds to purchase Bitcoin, which he subsequently converted to Tether (USDT) on the fake platform, ultimately losing 33 BTC or $2.1 million USD.
“It’s absolutely distressing that such scams have extended their reach globally,” the attorney remarked.
An FBI report released on September 9, 2023, highlighted that the FBI Internet Crime Complaint Center received over 69,000 reports of financial fraud involving cryptocurrencies, revealing that Americans lost $5.6 billion to crypto scams this year alone.
