Law enforcement agencies in the Asia-Pacific region have frozen nearly $50 million in illicit funds with the assistance of Binance, Chainalysis, and other crypto industry participants.
The collaborative investigation concluded in June 2024, with Binance sharing its details only now.
The seized assets are linked to a fraudulent scheme known as “pig butchering.” This term refers to scammers “fattening up” their victims over time before defrauding them. The criminals build trustful relationships, then persuade the victims to invest in fake projects and disappear with the funds.
Chainalysis experts, using blockchain analytics tools, tracked transactions from dozens of victims of the scheme from November 2022 to July 2023. Ultimately, the experts linked the operations to the scammers’ wallets, which held $47 million in USDT.
The analysts provided the information to law enforcement, who requested the stablecoin issuer to freeze the funds. The swift asset freeze prevented the scammers from converting their proceeds into fiat.
“Our collaboration with these organizations underscores the critical role of public-private partnerships in curbing criminal activities and working towards compensating victims,” said Erin Fracolli, Head of Intelligence and Investigations at Binance.
The company noted that “pig butchering” is a global issue extending far beyond the crypto industry, but blockchain technology offers effective tools to combat such fraudulent schemes.
In August, Binance, Coinbase, Kraken, and other exchanges established the Beacon Network — the first real-time crypto crime response system.
