Regulators are finding a significant increase in so called "pig butchering" scams in the cryptocurrency industry and it's leading to a growing number of victims being defrauded. One example is the Chinese businessman Wang Yicheng, that has built relationships with Thailand’s law enforcement and political elite during the last two years. Throughout this period a cryptocurrency account in Wang’s name received millions of dollars associated with a pig butchering cryptocurrency investment scam. A staggering total of over $90 million in cryptocurrency flowed into the account between January 2021 and November 2022, with at least $9.1 million traced back to a crypto wallet connected to pig butchering scams, as identified by US blockchain analysis firm TRM Labs. Additionally, two other reputable crypto-tracking firms confirmed that the account received funds linked to such deceptive activities.

One of the victims was a 71-year-old California man that sent funds that was in the total of $100,000 showing up into the account under Wang's name, as reported by a blockchain analysis company Coinfirm. According to the man's family speaking to Reuters, he lost approximately $2.7 million, representing his life savings, after being deceived by an individual posing as an alluring young woman named Emma. 



In April, the U.S. Department of Justice announced the seizure of approximately $112 million worth of cryptocurrency associated with pig-butchering scams, without disclosing the identities of the suspects. A warrant leading to the seizure of over half of this sum specifically targeted a Binance account registered in Thailand.  

Financial crime specialists have stated that most pig-butchering scams have their roots in China. According to the U.S. Treasury, numerous such scams are presently operated by criminal groups based in Southeast Asia, which exploit victims of labor trafficking to reach out to individuals globally. That means that most of those doing the footwork in these scams are being helt against their will in complexes run by organized crime. Prosecuting these cases is challenging, as the perpetrators are often described as "ruthless transnational organized crime syndicates" thriving on corruption. Using cryptocurrency it is even easier for them to keep away from the law. 

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