Elliptic: Large-scale "Pig-butchering scams" are using Crypto Assets for Money Laundering

According to a report by CoinDesk, cryptocurrency analysis company Elliptic's “2025 Type Report” points out that “Pig-butchering scams,” as a form of emotional fraud, have become a multi-billion dollar industry by tricking victims into transferring funds to false Crypto Assets projects. Criminals' money laundering methods are becoming increasingly organized, resembling professional financial operations. They concentrate victims' deposits into hosted wallets, obscuring the source of funds through transaction chains, and may also use cross-chain bridges or payment services. Common tactics include using “mule accounts” on regulated platforms, which exhibit suspicious features such as identical addresses and repeated IP logins. Operators often work in call centers or warehouses in Southeast Asia, from where “Pig-butchering scams” originate. Unlike cash crimes, blockchain transactions are transparent, providing regulators with new tools to detect suspicious activities. Furthermore, “Pig-butchering scams” are just the tip of the iceberg, as those under sanctions increasingly use stablecoins for cross-border transactions.