Cayman victims conned in shāzhūpán scam
(CNS): The RCIPS has said that the Cayman Islands Bureau of Financial Investigation has received dozens of reports from Cayman residents as well as from people overseas involved in crypto-companies registered here that they had been conned out of millions of dollars through what is commonly known as “pig butchering” or a shāzhūpán scam.
In a press release issued Tuesday, the RCIPS warned that victims in the Cayman Islands are being targeted in this sophisticated scam operated by overseas criminal groups.
Answering questions from CNS, the CIBFI said that while these criminals go after people all over the world, the proportion of Cayman Islands victims seems to be higher than average, presumably because of the wealth of individuals living or doing business here and because of the crypto business being conducted in this jurisdiction.
On average, Cayman Islands victims have lost between CI$50,000 and $150,000, with some losing more than a CI$1 million. Overall, millions of dollars have been lost to these criminal gangs, but the investigators suspect that there are more victims who haven’t reported being conned.
“The scam is a type of fraud in which criminals lure victims into digital relationships to build trust before convincing them to invest in cryptocurrency platforms,” the CIBFI stated. “Unbeknownst to victims, the fraudsters control the platforms and will eventually take all the money and vanish.”
Drawing its name from the Chinese phrase shāzhūpán, the scams are usually perpetrated over a long period of time, and combine elements of romance scams, investment schemes, and cryptocurrency fraud. The fraudsters build some form of relationship with their victims — metaphorically fattening the pig. They then deceive them into making investments in fake business ventures and take every penny — the butchering.
Anyone can fall victim to this type of scam. Most victims are working age, between 30 and 60, though recently retired people have also been sucked into the scams, police said. Even police officers, those familiar with investment products, graduate students, engineers, consultant doctors and those working in the virtual currency space have been caught out by these criminals.
“Unlike the stereotypical scam victim, many of them are highly educated and digitally savvy,” the CIFBI officers said.
Unfortunately, very few victims have been able to get any money back. The criminals use a third-party money laundering service to obfuscate and hide the stolen funds within a huge and sophisticated network, turning over billions of dollars before being cashed out, usually to Chinese crime syndicates operating in South East Asia.
The CIBFI is encouraging anyone who thinks they may be engaging in similar online activities to visit the crime prevention page, review the tips and take the necessary steps to prevent any further loss.
People can also call +1(345) 649-4358 to make a report or speak with an investigator in person.
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Crypto is a high-tech pyramid scam for people who overestimate their intelligence.
You’ll be the same one lining up for CBDCs in the furture.
Yes, most are. But Bitcoin most certainly is NOT. It has no one in control because it is decentralized.
I keep getting calls from a New York number. I haven’t answered any as I don’t know who it is.
Anyone else get these NY calls….?
Or, crypto is the future of money where people control their own money and don’t have to suffer the value being inflated away by governments who skim the profit. When gold was money, governments couldn’t inflate the currency except by debasing coins with other metals. Neither could they run up astronomical debts that were financed by the paper money printing press. Crypto is an opportunity to return to that far fairer and just monetary system.
Scams like this are most effective at duping the most greedy.
Are you suggesting that my $2,000 investment which is now valued at $2,000,000 after just 6 months might not be real?
Clear as mud.
If you still think you can make money in crypto, your joking yourself. That ship has sailed. If China regulates it and they most likely will. She gone.
Are you drunk?
this is precisely why people will still make money. TradFi junkies will deny it till the bitter end. By then, smart money has moved over to FinTech and by default crypto. If you have not been following the Ripple case and how entrenched they are with helping the transition from TradFi, then you would not understand how close the world really is to a digital economy.
BTE minister can educate you on crypto.
Best way to make money related to Crypto, sell shovels to the crypto prospectors. 99% of the crypto/blockchains will fail. But they need lawyers and directors to set them up and insolvency practitioners to wind them down.
But hey, we are in the “exponentially stupid age”.
Do you know what a blockchain is? What about a smart contract?
The essentials of crypto are fine. The users, perhaps not.
New age ponzi scheme that will fail, crashing the global economy
How does it defer from fiat currency with no tangible underlying value and inflationary in nature? Bitcoin is deflationary in nature and the value lies in the blockchain technology and mass adoption of transaction efficiency.
Last I checked currency is based off trade and perceived value. A tax base prehaps and military might. It is already widely accepted and it works. More things going for fiat then crpyto which it not widely adopted, it thank goodness it works.
Perhaps you should read a little history and see what has happened over time to the German Mark, the British Pound, the US Dollar … Hardly a reason to prefer paper money. Paper money always returns to its default value.
Where do you see mass adoption? Crypto is a dwarf in comparison to the daily transaction value of FX. Get off it mate.
You are talking gibberish to the TradFi Geniuses. A corrupt system does not like an incorruptible ledger.
Elon Musk is my hero too
” Unfortunately, very few victims have been able to get any money back. The criminals use a third-party money laundering service to obfuscate and hide the stolen funds within a huge and sophisticated network “….like off-shore financial centers, trusts, real estate, shell companies, etc. The irony.
Real Vision is a bigger scam
We living in an exponential age.
Lol !!!
Wait, do people still fall for the “Hi! I’ve come into a lot of money and need to move it, but need you to move it for me” scam??
Look people, if it seems too good to be true, it is. If someone you’ve never met is being flirtatious with you online, and you don’t get that much attention in the “real world”, don’t you think you should question it?
Its very simple, emails from someone you don’t know, delete them. DMs or texts from someone you don’t know, delete them.
I can’t get any flirtatious attention Off-line
Crypto is a dwarf compared to global equity market and fixed income. Indications about 2.5% of equity market.
Crypto is were dumb money, VC and PE cash goes to die.
You’ll soon be eating your words as more sophisticated investors have done on national television.
Don’t understand, I have 4 different investment firms I work with, all who have been around. I won’t even give others the time of day, got to do your homework.
Entities in CEC are not regulated by CIMA….everyone knows this (including FATF).
It would be good for someone to compile a list of companies inside CEC who have litigation against them for financial related reasons.
CIMA needs to begin auditing CEC related businesses.
The SEZ Act specifically exempts CEC registered entities from CIMA oversight. Need to hold law firms accountable too…as some push these structures within SEZ for crypto.
If true that is utter madness.
if you think CIMA protects your money you are the bigger fool
I get asked by investment managers and crypto project guys to invest in their funds/projects. I thought these companies were not supposed to chase Cayman resident s?
People who are into crypto are by definition vulnerable to scams.
I made quite good ROI independently trading crypto for the few years that I was abroad at university, so no, you’re wrong. It is quite easy to do a modest 1-2% ROI per DAY, whereas I get that annually from credit union interest now.
People who don’t know how to read the market and understand technical indicators but throw their life savings into a leveraged crypto position then get wiped out in one swoop are the people who come on here to comment “CrYpTo iS a ScAm!?”
It’s decentralized and independent meaning you aren’t paying a middleman to invest it for you to prevent such catastrophic trades. However this means you control your money, and not a centralized financial institute that will invest your savings and give you pennies on the dollar for the return.
If you’re so smart how come you’re not still trading it then?
Or, if Crypto has so much exponential future value why are Crypto broskis wanting to give their coins for high end luxury properties?
I wonder. …
Again, the ignorance. No surprise most of unna CIMAbots up in this thread harping about getting scammed.
Which investor keeps all of their eggs in one basket?
Which investor makes a significant profit and doesn’t use it to buy literally anything, ever?
Make believe money
These are the type of people you say nothing to when you hit big. Just have them see the signs if they’re not too busy comparing other people’s lives to theirs and complaining about literally everything.
Diversification, any successful investor does this. You speak as if all persons invested in crypto are 100% invested. Then you’re so arrogant to ask why they buy real estate when they make 1000% return? Sounds more like envy to me.
Um, that’s exactly what we’re doing. What makes you think we aren’t cashing in?
Lol.. the ignorance. I’d pay in crypto for everything here if I could.
I never stopped, but local banks are now blocking access to exchanges so it’s become mainly P2P in order to bring back in your profits, and that brings a ton of hurdles without pissing off CIMA and having them come kick down my door. The “it’s for your own protection” explanation is a load of BS.
It’s undeniable that they’re blocking it because it’s a threat to their business model. However, it’s my earned money, not yours to demand control over.
There’s a lady here that usually buys peppers from individual farmers then sells the bulk of peppers for a markup / profit.
I can’t imagine her being too pleased either if she realized that the little farmers were catching on that they could control the profits generated by their peppers themselves, and she would no longer be able to profit off of their hard work..
2:35 pm you face adversary in this comment section because you are the farmer standing up against the middlewoman who wants to protect her business model.
Interesting that you need the bank still. Crypto is reliant on existing banking infrastructure to make it viable. Lol
sounds like our pension system.
We can’t even stop the “Honey Chile defamator” what hope do we have of dealing with sophisticated fraudsters?
You can be scammed through literally any opportunity where some form of value leaves your possession.
Cryptocurrency is just but another way to perform transactions, and unfortunately, despite its widespread valid use as is in the case of physical cash, sometimes criminals act upon it be it a crypto or cash scam.
Crypto Bro has entered the chat.
Gee, thanks.
“widespread valid use” LOL
A currency created to move illegal drugs on the Silk Road undetected isn’t valid?
Shocking.
The rich being scammed?! Oh no.
Anyways…
when is the last time you heard of a person in being arrested or prosecuted for cyber crime in cayman. bitlocking, digital identity theft, literally anything. seems like an easy target, people with money and no fear of any repercussions.
Cayman does not prosecute white collar crime, or sanction those convicted of it.
…only true if they are BoBos…….
These criminals are out of reach. You don’t even know their real names.
you are kind of hammering the point home of why it makes Cayman an easy target with that comment.