- Organized crime groups carry out fraudulent activities in Southeast Asia.
- The US DOJ seized $112 million in cryptocurrencies related to these scams in 2023.
- Chainalytic reported that fraud profits reached $9.9 billion in 2024.
Once considered a consumer-level scam, pig slaughter scams have quietly evolved into a web of global organized crime.
Linked to human trafficking, cryptocurrency abuse, and international money laundering, authorities are now viewing these scams as a national security issue.
In a recent Chainalytic podcast, Andrew Fierman, the company’s director of national security intelligence, and Erin West, a former prosecutor and founder of Operation Shamrock, discussed the evolution of the hog slaughter scam.
They paint a chilling picture of how the fraud transformed from a digital fraud into a full-blown transnational criminal model.
The scam involves building a trust-based relationship, sometimes romantic and sometimes platonic, over time before luring victims into fake cryptocurrency investments.
The funds are then absorbed through fake platforms and disappear into opaque cryptocurrency networks.
Southeast Asia Compounds and Forced Fraudulent Labor
Pig slaughter operations are no longer run by isolated hackers. Fierman and West explained that many are now supported by a wide-ranging fraud syndicate operating throughout Southeast Asia.
These organizations operate dormitory-style buildings where workers, often victims of human trafficking, are forced to run fraud networks.
In 2023, the U.S. Department of Justice (DOJ) seized approximately $112 million worth of cryptocurrency in connection with this scheme.
But according to Chainalysis, the problem grew rapidly.
Fraud-related revenues in the cryptocurrency space exceeded $9.9 billion in 2024, with pig slaughter scams alone increasing by nearly 40% compared to the previous year.
Victims often suffer more than once. After the initial funds are depleted, many people receive follow-up messages from scam recovery companies offering “assistance” in recovering their lost assets.
These secondary scams use the same tactics, often using listings sold between scammers to retarget victims.
Fight back using blockchain visibility
Pig slaughter relies on leveraging emotion and trust, but infrastructure often travels on traceable digital rails.
Fierman suggested that this is where blockchain transparency can help combat fraudsters.
Tracking wallet flows and on-chain transactions allows regulators, exchanges, and virtual asset service providers (VASPs) to intervene.
This is especially possible at the point of cash, which remains a significant vulnerability for these operations.
Efforts are underway to freeze and recover these funds.
In August, joint action by APAC law enforcement agencies and companies including Chainalysis, OKX, Binance, and Tether resulted in the freezing of $47,000,000 linked to a pig slaughter scheme.
DOJ is leading a new task force.
The United States is taking this issue seriously.
On November 12, the DOJ announced the launch of a new “Fraud Center Strike Force.”
The unit will specifically target transnational criminal organizations linked to Southeast Asia that operate these sophisticated cryptocurrency investment scams.
This strategy goes beyond arrests.
This includes targeting fraud economy enablers, including those providing payment solutions, managing digital platforms and providing bank rails.
This approach includes sanctions, prosecutions, and diplomatic efforts to pressure malicious actors across borders.
Erin West said every legal and technical tool available should be used in this fight.
In particular, mass disruption across entry and exit points for cryptocurrency fraud remains a top priority for law enforcement.
Common tactics and growing digital risks
Despite increased scale and coordination, the core mechanisms of pig slaughter have not changed.
Scammers still initiate contact through messaging platforms, using charm and emotional manipulation to build trust.
Quick declarations of love, secrecy about personal information, and pushing for investments in “guaranteed” cryptocurrency platforms are major warning signs.
These scams often include screenshots showing fake profits to pressure victims into depositing funds.
Once inside, victims are encouraged to invest more before ultimately being blocked from the system.
But these scams are now situated within a broader criminal framework that combines human exploitation and financial laundering.
Victims are no longer just people who have lost their savings.
They are also unknowingly interacting with the global machinery that facilitates human trafficking and cross-border criminal finance.