Federal officials are seeking to seize more than $6 million in cryptocurrency tied to Feng Chen and Tianqiong Xu, a Chinese couple accused of running a massive “pig butchering” scam before fleeing the United States.
The couple fled to China last year, days after an FBI raid on their Frisco, Texas home. They were indicted in June 2024 by a federal grand jury in Vermont on charges including wire fraud and money laundering.
Court documents show Chen and Xu specifically targeted individuals of Chinese heritage across the U.S., defrauding at least 120 victims out of about $9.5 million. The couple operated from their five-bedroom house, tricking victims into investing in fake cryptocurrency apps and accounts.
The scam involved sending fraudulent reports to victims, convincing them their investments were growing. “Pig butchering” scams build trust over time before stealing funds, often within close-knit communities. Chen and Xu reportedly recruited victims from Chinese-language investment chat rooms.
One Vermont victim reportedly liquidated their retirement account, sending $600,000 to the couple. The FBI noted cryptocurrencies like Bitcoin and Ethereum are frequently used in fraud due to their unregulated nature and ease of transfer.
Agents traced the couple’s scam network back to early 2021. Though their home was searched in late 2023, Chen and Xu were not arrested immediately. Instead, they obtained passports from the Chinese embassy in Houston and fled to China with their children.
Feng Chen, originally from Wuhan, holds master’s degrees in petroleum engineering and geology. Prosecutors say he used advanced computer skills to create fake apps and chatbots to deceive victims.
If they return to the U.S., Chen and Xu face prosecution on wire fraud and money laundering charges.
