A Kansas banker who embezzled millions from his bank in 2023, causing its collapse, was also a victim of a massive 'pig butchering' crypto scam, with the US Department of Justice seizing over $225 million in laundered USDT. The scam, which involved a Philippines call center, affected 434 victims who lost a combined $19.4 million, with the banker being the largest victim, losing $3.3 million of the $47 million he embezzled. The DOJ complaint reveals an intricate network of accounts used to launder the crypto proceeds, with the help of a crypto exchange, OKX, which provided key information to identify the scammers. The laundered funds were funneled through multiple wallets and accounts, generating approximately $3 billion in transaction volume.
The largest victims included 60 individuals who lost a combined $19.4 million, with the banker being the largest victim. The US government has seized the laundered crypto, which will likely be earmarked for a federal stockpile, with the possibility of returning some funds to the victims.