Elliptic Warns of Industrial-Scale Pig Butchering Scams Laundering Through Crypto
Blockchain analytics firm Elliptic reported that pig butchering scams have evolved into a multibillion-dollar global industry. This type of fraud, which involves grooming victims into sending money for fake crypto investment schemes, utilizes sophisticated methods to launder stolen funds. Scammers frequently consolidate victims' deposits into self-hosted wallets and employ cross-chain transfers to obscure the funds' origins. Mule accounts on regulated crypto platforms are often used, where suspicious activities can be traced through shared addresses and IP logins. The report emphasizes that, unlike cash-based crimes, blockchain transparency provides unique opportunities for regulators and platforms to identify illicit activities. Additionally, the document highlights a broader concern where individuals under sanctions are increasingly utilizing stablecoins for cross-border transactions. Elliptic’s findings showcase how organized criminal efforts in the crypto space are becoming more professional, necessitating heightened vigilance and innovative regulatory approaches.
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