Authorities in the Asia-Pacific region froze near $50 million in June 2024 linked to a pig butchering scam – a type of investment and romance fraud. Binance, Chainalysis, and other industry partners joined the operation.
Pig butchering is a type of scam where the victim is first “fattened up”: scammers build trust, often through messengers or dating apps, and then convince them to invest in fake opportunities. Once the amount becomes significant, the scammers disappear.
How the Scheme Works
The scheme itself is old – versions of it have existed in traditional finance for decades. But with the rise of crypto, it has reached a new level, becoming larger in scale and more global. According to the U.S. Department of Justice, in 2023 around $225 million in stablecoins was frozen – the largest seizure in the history of the U.S. Secret Service.
In this 2024 case, Chainalysis analysts tracked the movement of victim funds in Southeast Asia between November 2022 and July 2023. The transactions led to a network of wallets, including five major addresses that together held nearly $47 million in USDT.
First, scammers collected funds into a single wallet, then transferred them to intermediary addresses, and finally consolidated them into five main ones. Sometimes they sent small sums back to victims to create the illusion of returns and extend trust.
Analysts passed the information to local law enforcement. In June, regional authorities issued freeze orders to stablecoin issuers for the identified funds. Thanks to the quick response, the scammers were prevented from converting assets into fiat.
Comments From Operation Participants
According to Binance’s head of global investigations Erin Fraccoli, such cases prove the importance of cooperation between the industry and law enforcement. Binance actively shares data with authorities and other exchanges to stop the spread of crypto-related crimes.
Chainalysis highlighted the importance of stablecoin issuers having the technical ability to freeze funds at the request of law enforcement. Blockchain analytics can support investigations at all stages – from deanonymizing addresses to building wallet connections and providing actionable intelligence.
Although the share of illegal activity in cryptocurrencies is relatively small, each case represents real losses for victims, analysts note. That is why the industry and law enforcement continue to build countermeasures and long-term alliances.
Binance stated that it will continue to invest in analytical capabilities, share knowledge with partners, and support law enforcement agencies around the world.
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