Deniz 
According to a new Chainalysis analysis, crypto criminals have switched from Ponzi schemes to more focused frauds like “pig butchering” in the last year.
Driven in part by rising enforcement efforts and stablecoin issuers blacklisting scam addresses, Friday’s Chainalysis mid-year update part two noted, “There is a macro trend consistent with the continuous pivot of scammers from elaborate Ponzi schemes that cast a wide net to more targeted campaigns like pig butchering or address poisoning.”
Pig butchering frauds get their name from the way con artists “fatten up” their victims in order to get most value. Usually, this entails developing a romantic relationship over time via text messaging or dating apps, then convincing the victim to fund a bogus project. According to Chainalysis, many of the scammers planning these exchanges are themselves victims—kidnapped, trafficked to Southeast Asia, and compelled to work in labor camps within big compounds to execute these schemes.
Friday’s Chainalysis analysis reveals that one of the biggest bitcoin wallets connected to fraud is linked to KK Park, one of the most infamous pig slaughterhouses worldwide. KK Park, in Myanmar, has grown to be a major center for human trafficking and internet fraud.
“The KK Park wallet was first observed on-chain in 2022, and scamming operations using this address continue to generate significant revenue, netting over $100 million so far this year. Those funds could have come both from scam victims and from ransom payments submitted by families attempting to save their trafficked family members,” the paper said.
Workers at KK Park suffer 17-hour workdays and are routinely watched upon, tortured, and threatened with murder should they try to flee the facility, according to 2024 research by the German state-owned media Deutsche Welle.
Furthermore, Chainalysis noted that scam operations emanating from KK Park and related compounds are rampant in terms of off-chain scam presence, regularly buying seasoned Facebook, Tinder, and Match.com profiles from China-based companies for use in their campaigns.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.