Mars Finance reported that on September 21, the U.S. SEC has filed lawsuits against three individuals and five companies, accusing them of operating a "pig killing" scam. The two lawsuits filed on Tuesday are the SEC's first enforcement actions against this crypto scam, just one day before the U.S. House Financial Services Committee is preparing to hold a hearing on the "pig killing" scam.
“Relationship-based investment scams, including those involving crypto asset investments, pose a significant risk to retail investors, and the threat is growing rapidly as these scams become more popular among scammers,” said Gurbir S. Grewal, Director of the SEC’s Enforcement Division, in a press statement. “In both cases, we allege that the scammers created fake crypto ecosystems and presented investors with false information. Our charges serve as a reminder for the public to be extremely wary of investment opportunities promoted by strangers on social media.”
