Law enforcement agencies in the Asia-Pacific region, together with Binance, Chainalysis, and other representatives of the crypto industry, prevented nearly $50 million in illicit funds from being cashed out. Binance disclosed the details of the investigation, which concluded in June 2024, only now
How the Scheme Worked
The frozen assets were linked to a scam known as “pig butchering.” This term refers to a tactic where criminals build trust with victims over an extended period—“fattening them up” with attention and promises—before persuading them to invest in fake projects and then disappearing with the money.
The Role of Blockchain Analytics
Chainalysis experts used blockchain analytics tools to track the transactions of dozens of victims between November 2022 and July 2023. The investigation eventually linked the transfers to wallets controlled by the fraudsters, which held $47 million in USDT.
The data was handed over to law enforcement, who then requested that the stablecoin issuer freeze the funds. This swift action prevented the criminals from converting the stolen assets into fiat currency, effectively blocking access to their illicit gains.
Public-Private Partnership
Erin Fracolli, Head of Intelligence and Investigations at Binance, emphasized the importance of collaboration between public authorities and private companies:
“Our cooperation with these organizations highlights the critical role of public-private partnerships in curbing criminal activity and working toward compensating victims.”
A Global Issue
Binance noted that pig butchering schemes are a global problem extending far beyond the crypto industry. However, blockchain technology offers powerful tools for tracking and preventing such fraudulent activities.
Additionally, in August 2024, Binance, Coinbase, Kraken, and several other exchanges announced the launch of Beacon Network — the world’s first real-time response system for crypto-related crimes.
