U.S. federal prosecutors have charged a Vietnamese national with laundering cryptocurrency linked to a so-called pig-butchering fraud that authorities say drained about $16 million from one victim and moved far larger sums through digital wallets over several years.
The defendant, 37-year-old Trung Nguyen Van, faces a two-count criminal complaint in the Western District of Missouri. The complaint was unsealed after his initial court appearance in Los Angeles, according to the U.S. Attorney’s Office in Kansas City.
Complaint centers on alleged laundering activity
Prosecutors say Van handled proceeds connected to a wider online investment scam built around a fake cryptocurrency platform called Triangle. In court filings, investigators described a pattern in which victims were persuaded to send digital assets they believed were being invested, while the money was instead routed through wallets allegedly controlled by Van.
The charge is framed as money laundering rather than a direct fraud count. Authorities allege that Van’s cryptocurrency wallets were used to receive and move funds connected to wire-fraud schemes targeting people in the United States.
One victim allegedly sent about $16 million
According to the filings, one victim transferred about $16 million in cryptocurrency between June and August 2024 after being led to believe the funds were going into an investment opportunity on Triangle.
Investigators traced one transfer of more than $569,000 directly to a wallet they say Van controlled. They also allege that, within days, the same wallet received six more transfers totaling roughly that amount. Nearly all of those funds, about $568,000, were then moved into a self-custody wallet, according to the complaint.
Authorities say the wallet activity was much broader
Federal investigators contend the activity was not limited to a single victim or a single episode. Between February 2018 and December 2024, Van’s wallets allegedly received an estimated $53.3 million in cryptocurrency tied to wire-fraud schemes aimed at Americans.
The government says nearly all of that cryptocurrency was later funneled off the traceable blockchain. The filing, as described by prosecutors, presents that movement of funds as part of a broader laundering pattern rather than an isolated transaction.
How pig-butchering schemes typically work
Pig-butchering is the term commonly used for fraud operations in which scammers first build trust with targets, often by posing as romantic interests or friendly contacts online. Initial contact can come through dating apps, unsolicited text messages, or social media platforms.
Once a relationship is established, victims are directed to fraudulent trading or investment websites and shown fabricated profits designed to encourage larger deposits. Prosecutors say the alleged conduct in this case followed that general model.
What officials have confirmed so far
R. Matthew Price, the U.S. attorney for the Western District of Missouri, said pig-butchering schemes have become increasingly prevalent and sophisticated, causing billions of dollars in losses worldwide. FBI Special Agent in Charge Chris Ormerod said the bureau’s Kansas City Field Office worked with private-sector partners to unravel the scheme and prevent additional victimization.
At this stage, the confirmed next step is the criminal case itself. The allegations remain those of prosecutors, and the complaint now moves forward following Van’s initial appearance in federal court in Los Angeles.
Source: news.bitcoin.com