The Chainalysis report sheds light on the alarming trend of romance scams originating from Myanmar, where criminal gangs have amassed approximately $100 million in cryptocurrency over the past two years. These scams exploit victims through fake relationships and persuade them to invest in crypto under the guise of pig butchering schemes.
The criminal operations are primarily based in the KK Park compound in Myawaddy, Myanmar, where thousands of trafficked workers are housed. Victims of these scams are subjected to harsh working conditions and coercive tactics to meet the scammers’ quotas.
Chainalysis’s analysis of ransom addresses associated with these criminal groups reveals substantial amounts of cryptocurrency, underscoring the profitability of these illicit activities. Despite some successes in law enforcement efforts to combat these crimes, the pervasive nature of romance scams emphasizes the urgent need for solutions to address the problem.
In a notable case in November 2023, the U.S. Department of Justice (DoJ) collaborated with Tether to seize $9 million worth of USDT from a criminal organization involved in romance scams targeting American investors. The DoJ stated that the seized assets belonged to over 70 victims of pig butchering scams. Tether has since blacklisted nearly 1,300 crypto wallets associated with illicit activities, as reported by CCData.
