Upwintrade Crypto Platform Accused of Elaborate ‘Pig-Butchering’ Fraud in Federal Lawsuit
On Friday, August 2, 2024, Peter Harris and Loni Harris, a married couple from San Francisco, filed a lawsuit alleging they were victims of an international cryptocurrency scam.
The lawsuit was filed in the U.S. District Court for the Eastern District of Texas against Upwintrade.com, David Shamlian, and 20 unidentified individuals. According to the complaint, the defendants utilized fraudulent means to trick the Harrises into depositing over $650,000 worth of assets onto a fake cryptocurrency trading platform they controlled, called Upwintrade.
The complaint describes Upwintrade and its affiliates as running a “pig-butchering” scam, wherein victims are initially contacted and their trust gained using manipulated psychological tactics. The victims are then convinced to start “investing” in a cryptocurrency trading site that turns out to be fake. Although the platform falsely represents the deposited funds as growing over time, victims are unable to make withdrawals without paying excessive taxes or fees. It is alleged the purpose of the platform is solely to steal victims’ money.
In the Harrises’ case, they were initially approached through a fake Facebook account posing as one of Loni Harris’ old friends. This led them to David Shamlian, who convinced them of his success investing through Upwintrade. Over several months, Shamlian guided the couple through fake trading activities on the platform until they had deposited over $650,000. When withdrawal issues arose, the truth was revealed.
The lawsuit asserts claims of racketeering, conversion, and fraud. It seeks the return of the stolen assets via a constructive trust, monetary damages, treble damages under RICO, and injunctive relief.
According to the complaint, tens of thousands of diligent Americans have been stripped of their life savings due to these fraudulent schemes. Recent studies suggest that pig-butchering criminal enterprises have stolen over $75 billion from victims globally since 2020. Within the United States specifically, victims reported losses of $2.6 billion to pig-butchering and other cryptocurrency scams in 2022 – more than double the amount from the previous year.
However, identifying and locating the perpetrators of international cryptocurrency scams presents serious challenges. While the Harrises’ investigation firm traced assets to wallets at three exchanges, the true identities and whereabouts of the defendants remain unknown. Through subpoenas and preservation of assets, the lawsuit hopes to further uncover the details of this scam and seek recovery and justice for its victims.
Please contact BlockTribune for access to a copy of this filing.
