The multibillion-dollar “pig-butchering” scam—long viewed primarily as a consumer-fraud issue—has now reached a new level, raising alarms about national security.
On a recent podcast, Andrew Fierman, Chainalysis’ head of national security intelligence, and former prosecutor Erin West, founder of the anti-scam nonprofit Operation Shamrock, discussed how pig-butchering schemes are evolving into a broader national security threat.
“If anyone is touching money in any way, you’re part of this,” West said, stressing the need for greater awareness and education. “You need to understand the threat and the gravity of what’s happening on a national security level.”
Pig-butchering scams involve cultivating long-term trust—often through romance or friendship—before luring victims onto fraudulent crypto-investment platforms and emptying their accounts.
The Growing Scale of Pig-Butchering Scams
On the podcast, Fierman and West detailed how fraud networks across Southeast Asia run large, dormitory-style scam compounds where trafficked workers groom victims online—often through romance—before steering them into fake crypto investments and draining their savings.
In 2023, the U.S. Department of Justice (DOJ) seized roughly $112 million in crypto tied to pig-butchering schemes. Chainalysis also reported in February that these scams surged nearly 40% year-over-year in 2024, contributing to more than $9.9 billion in total crypto scam revenue.
Another underreported aspect is that victims are frequently targeted twice. After the initial fraud, scammers—or new rings—often follow up posing as recovery firms offering to “help” victims get their money back.
“Once this happens to you, you will be put on a list […] and you are even more likely to get hit up again,” West said.
According to Fierman and West, these schemes have evolved into a transnational crime model that blends human trafficking, money laundering and crypto infrastructure, making them far more complicated than typical fraud.
Fierman noted that blockchain transparency could give regulators, exchanges and virtual asset service providers (VASPs) a way to intervene.
“One of the benefits of the blockchain…is that there is potential opportunity for disruption,” he said. “The transparency of the blockchain gives that opportunity to potentially disrupt at the point of cash out.”
How Authorities Are Responding
Governments are now escalating their efforts. On Nov. 12, the DOJ launched a “Scam Center Strike Force” targeting Chinese-linked criminal organizations running crypto-investment fraud in Southeast Asia.
Meanwhile, regional law enforcement agencies are imposing freezes and sanctions. On Aug. 27, APAC authorities, working with Chainalysis, OKX, Tether and Binance, froze $47 million in pig-butchering-related funds.
The broader strategy is clear: disrupt the on- and off-ramps scammers rely on, target the facilitators and strengthen public–private partnerships.
“My advocacy about transnational organised crime has been consistently: Use every tool in our arsenal—sanctions, indictments, diplomatic pressure,” West said.
Red Flags to Watch For
Pig-butchering scams often rely on emotional manipulation. Someone who expresses intense feelings too quickly—especially without meeting in person—may be attempting to scam you.
Suspicion should grow if the person refuses to share personal details or professional credentials.
A major warning sign is the introduction of money—whether framed as an emergency or a “can’t-miss” investment opportunity. Scammers frequently show fabricated screenshots of huge gains to lure victims into depositing funds.
