Chainalysis and financial crime experts warned that the fraud scheme known as pig-butchering is no longer an isolated consumer scam and has evolved into a transnational criminal network that blends human trafficking, money laundering and the extensive use of crypto assets.
Andrew Fierman, head of national security intelligence at Chainalysis, and former prosecutor Erin West explained that crime groups in Southeast Asia operate compounds where trafficked workers contact victims, build emotional trust and lead them into fake crypto investment platforms. The DOJ seized $112 million in 2023 tied to these operations. The firm reported a year-over-year increase of nearly 40% in 2024.
The DOJ created the Scam Center Strike Force to pursue China-based organizations, and agencies across APAC have already coordinated the freezing of $47 million together with Chainalysis, OKX, Tether and Binance. The goal is to cut off on-ramps and off-ramps and impose sanctions on actors that facilitate these underground operations.
Source: https://www.chainalysis.com/blog/crypto-national-security-pig-butchering-ep-174/
Disclaimer: Crypto Economy Flash News are based on verified public and official sources. Their purpose is to provide fast, factual updates about relevant events in the crypto and blockchain ecosystem.
This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions.
