"Pig-butchering scams" have escalated from eyewash to a national security threat, and regulatory authorities are beginning to take serious action.

Encryption scams “Pig-butchering” suddenly jumped from consumer issues to national security level.

Chainalysis and Operation Shamrock jointly stated: This is not just about scamming money; it involves human trafficking, money laundering, and cross-border crime networks, primarily active in Southeast Asia.

The scam has advanced

The trick is simple: meet online → fake investment platform → lose everything. But now it has been upgraded to a streamlined operation —

Criminal groups set up “scam factories” in Southeast Asia, using trafficked human labor to impersonate investment consultants or the opposite sex, specifically targeting middle-class elites. In 2024, this type of scam increased by 40%, with a total scam amount exceeding $9.9 billion.

There is a more insidious scheme: “Double Kill” — after tricking you the first time, they impersonate a “debt collection company” to scam you again. Once victims are on the list, they will be continuously harassed.

Regulatory Backlash Begins

The U.S. Department of Justice established a “Fraud Center Special Task Force” in November, specifically targeting criminal gangs with connections to China.

Last year, the police in Jakarta, Indonesia arrested 20 suspects and froze $47 million in black assets. This year, the APAC police joined forces with Chainalysis and several major exchanges to freeze an even larger scale of illegal funds.

Blockchain Transparency Becomes a Weapon

Good news: On-chain transactions are traceable. Chainalysis points out that due to blockchain transparency, regulators have the opportunity to intercept funds during the withdrawal phase.

In simple terms: The money you were scammed out of has a chance of being frozen in the exchange.

Reminder: If a stranger chats with you online about “investment opportunities”, there's an 80% chance they are a hunter. Stay vigilant.