{"id":62926,"date":"2025-11-14T15:26:00","date_gmt":"2025-11-14T15:26:00","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/crypto-romance-scams-now-a-national-threat-not-just-consumer-fraud\/"},"modified":"2025-11-14T15:26:00","modified_gmt":"2025-11-14T15:26:00","slug":"crypto-romance-scams-now-a-national-threat-not-just-consumer-fraud","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/crypto-romance-scams-now-a-national-threat-not-just-consumer-fraud\/","title":{"rendered":"Crypto romance scams now a national threat, not just consumer fraud"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251114_1815_Crypto-Scam-Warning_simple_compose_01ka16ab3afgr8dftds7f00mn6-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251114_1815_Crypto-Scam-Warning_simple_compose_01ka16ab3afgr8dftds7f00mn6-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251114_1815_Crypto-Scam-Warning_simple_compose_01ka16ab3afgr8dftds7f00mn6-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251114_1815_Crypto-Scam-Warning_simple_compose_01ka16ab3afgr8dftds7f00mn6-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li>Organised crime groups run scam operations from Southeast Asia.<\/li>\n<li>The US DOJ seized $112 million in crypto linked to these scams in 2023.<\/li>\n<li>Chainalysis reported scam revenues reached $9.9 billion in 2024.<\/li>\n<\/ul>\n<p>Pig-butchering scams, once seen as consumer-level fraud, have quietly evolved into a global web of organised crime.<\/p>\n<p>With links to human trafficking, cryptocurrency abuse, and international money laundering, authorities are now viewing these scams as matters of national security.<\/p>\n<p>In a recent <a href=\"https:\/\/www.chainalysis.com\/blog\/crypto-national-security-pig-butchering-ep-174\/\">Chainalysis podcast<\/a>, Andrew Fierman, the firm\u2019s head of national security intelligence, and Erin West, a former prosecutor and founder of Operation Shamrock, discussed the evolution of pig-butchering scams.<\/p>\n<p>They painted a chilling picture of how the fraud has transformed from digital deceit to a full-blown transnational crime model.<\/p>\n<p>The scam involves creating trust-based relationships with victims over time, sometimes romantic, sometimes platonic, before luring them into bogus cryptocurrency investments.<\/p>\n<p>Funds are then siphoned through fake platforms and disappear into an opaque crypto network.<\/p>\n<h2>Southeast Asian compounds and forced scam labour<\/h2>\n<p>Pig-butchering operations are no longer run by isolated hackers. Fierman and West explained that many are now backed by sprawling fraud rings operating across Southeast Asia.<\/p>\n<p>These rings run dormitory-style compounds where trafficked workers, often victims themselves, are forced to operate scam networks.<\/p>\n<p>In 2023, the US Department of Justice (DOJ) seized around $112,000,000 in crypto tied to such schemes.<\/p>\n<p>However, according to Chainalysis, the problem has grown rapidly.<\/p>\n<p>Scam-related revenue in the crypto space exceeded $9.9 billion in 2024, with pig-butchering scams alone increasing by nearly 40% compared to the previous year.<\/p>\n<p>Victims often suffer more than once. After being drained of their initial funds, many receive follow-up messages from fraudulent recovery companies offering to \u201chelp\u201d retrieve their lost assets.<\/p>\n<p>These secondary scams use the same tactics, often targeting victims again by using lists sold among fraud rings.<\/p>\n<h2>Using blockchain visibility to fight back<\/h2>\n<p>While pig-butchering relies on exploiting emotions and trust, the infrastructure often moves through traceable digital rails.<\/p>\n<p>Fierman suggested that this is where blockchain transparency can be turned against the scammers.<\/p>\n<p>By tracking wallet flows and transactions on-chain, regulators, exchanges, and virtual asset service providers (VASPs) can intervene.<\/p>\n<p>This is particularly possible at the point of cashing out, which remains the critical vulnerability for these operations.<\/p>\n<p>Efforts are being made to freeze and reclaim these funds.<\/p>\n<p>In August, a joint action by APAC law enforcement agencies and firms like Chainalysis, OKX, Binance, and Tether resulted in freezing $47,000,000 tied to pig-butchering schemes.<\/p>\n<h2>DOJ leads with new task force<\/h2>\n<p>The US is treating the matter seriously.<\/p>\n<p>On 12 November, the <a href=\"https:\/\/www.justice.gov\/usao-dc\/pr\/new-scam-center-strike-force-battles-southeast-asian-crypto-investment-fraud-targeting\">DOJ announced<\/a> the launch of a new \u201cScam Center Strike Force\u201d.<\/p>\n<p>This unit will specifically target transnational crime syndicates linked to Southeast Asia that have engineered these elaborate crypto investment frauds.<\/p>\n<p>The strategy goes beyond arrests.<\/p>\n<p>It involves targeting facilitators of the scam economy, including those offering payment solutions, managing the digital platforms, and providing banking rails.<\/p>\n<p>This approach includes sanctions, indictments, and diplomatic efforts designed to pressure bad actors across borders.<\/p>\n<p>Erin West stated the need to use all available legal and technical tools in this battle.<\/p>\n<p>Disruption at scale, especially across the entry and exit points of crypto fraud, remains the immediate priority for law enforcement.<\/p>\n<h2>Common tactics and growing digital risks<\/h2>\n<p>The core mechanics of pig-butchering have not changed, even as the scale and coordination have grown.<\/p>\n<p>Scammers still initiate contact over messaging platforms, using charm and emotional manipulation to build trust.<\/p>\n<p>Fast declarations of love, secrecy about personal details, and the push toward investing in a \u201cguaranteed\u201d crypto platform are major warning signs.<\/p>\n<p>These scams often include screenshots showing fake profits to pressure victims into depositing funds.<\/p>\n<p>Once in, victims are encouraged to invest more before being ultimately locked out of the system.<\/p>\n<p>Now, however, these scams sit within a broader framework of crime that merges human exploitation and financial laundering.<\/p>\n<p>Victims are no longer just people who lose their savings.<\/p>\n<p>They are also unknowingly interacting with a global machinery that fuels trafficking and cross-border criminal finance.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/crypto-romance-scams-now-a-national-threat-not-just-consumer-fraud\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Organised crime groups run scam operations from Southeast Asia. The US DOJ seized $112 million in crypto linked to these scams in 2023. Chainalysis reported scam revenues reached $9.9 billion in 2024. Pig-butchering scams, once seen as consumer-level fraud, have quietly [&hellip;]<\/p>\n","protected":false},"author":3947362361,"featured_media":62927,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/62926"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362361"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=62926"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/62926\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/62927"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=62926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=62926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=62926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}