U.S. Officials Try to Seize $6 Million in Crypto from Chinese Couple Behind Major Scam

Federal officials are working to take control of more than $6 million in cryptocurrency left behind by a Chinese couple accused of running a large online scam known as a "pig butchering" scheme.

According to prosecutors, Feng Chen and Tianqiong Xu scammed at least 120 people out of $9.5 million by tricking them into fake cryptocurrency investments. The couple reportedly ran the scam from their five-bedroom home in Frisco, Texas, before fleeing to China in late 2023—just days after the FBI searched their house.

The couple was indicted in June 2024 by a federal grand jury in Vermont. Court documents filed on May 22 show they specifically targeted people of Chinese heritage in the U.S., many of whom were found through Chinese-language investing chat rooms.

“Pig butchering” scams involve scammers gaining a victim’s trust over time—sometimes by pretending to befriend or even romance them—before persuading them to invest money. Victims are then shown fake reports suggesting their investments are growing, when in reality the scammers are pocketing the cash.

In this case, Chen and Xu allegedly created fake apps, emails, and online dashboards to make it look like the investments were legitimate. But all the money ended up in their own crypto wallets.

One victim in Vermont even emptied their retirement account and sent $600,000 to the couple, believing it was a safe investment.

Court records say the FBI and U.S. Secret Service had been investigating the couple since 2021. When the FBI searched their Texas home in late 2023, the couple wasn’t arrested immediately. Days later, they obtained emergency passports from the Chinese consulate in Houston and left for China with their two children.

Authorities are now trying to seize $6 million in crypto that the couple left in four digital wallets.

The FBI says Chen is originally from Wuhan, China, and studied petroleum engineering and geology at U.S. universities in Wyoming and Louisiana. Investigators believe he used his tech skills to build the fake apps and chatbots used in the scam.

Chen and Xu have been charged with wire fraud and money laundering. If they return to the U.S., they will face prosecution. Meanwhile, the case highlights the rising risk of crypto scams. In 2023 alone, Americans lost over $5.6 billion to crypto-related fraud, according to the FBI.