Crypto Assets fraud has transcended borders and become a national security threat... "Pig-butchering scams" have resulted in losses exceeding 13 trillion Korean Won.

The billion-scale crypto assets scam known as “Pig-butchering scams” has transcended mere consumer protection issues and is evolving into a “national security threat.” This scam method establishes trust with victims through emotional manipulation, luring them to fraudulent cryptocurrency investment platforms and stealing their funds.

Recently, Chainalysis' Head of National Security Intelligence Andrew Peirman and former prosecutor Erin West expressed concerns about the seriousness of this issue in a podcast. West emphasized that “the risk of this scam exists wherever there is a flow of funds,” highlighting the urgent need to enhance awareness and education regarding Crypto Assets scams.

Pig-butchering scams are mainly operated by organized crime networks in Southeast Asia, where human resources are sold in dormitory-style scam bases, interacting with unfamiliar victims, and disguising romantic relationships to induce investments. According to Chainalysis data, the scale of scams using this method has increased by over 40% compared to the previous year in 2024, with total Crypto Assets scam revenue surpassing $9.9 billion (approximately 131.22 trillion Korean Won).

The problem does not stop there. West pointed out that “once victimized, those listed are more likely to become additional targets for scams.” In reality, scam victims may also suffer secondary harm from alternative fake organizations claiming to be “restoration experts.”

Pielman explained that such scams have transcended ordinary crime, evolving into a “transnational criminal model” that integrates human trafficking, money laundering, and Crypto Assets payment systems. He also emphasized that blockchain transparency can provide opportunities for tracking the flow of scam funds and blocking them, adding that “proper use of blockchain can interrupt scams at the cash-out stage.”

The U.S. Department of Justice established the “Fraud Center Strike Force” in November 2025 to combat such Crypto Assets scams and launched a crackdown on organized crime linked to China. Investigative agencies in the Asia-Pacific region are also collaborating with Chainalysis, OKX, Tether, and Binance to freeze fraud assets worth $47 million (approximately 63.4 billion Korean Won) and initiate a joint response.

West emphasized that “all feasible means such as sanctions, prosecution, and diplomatic pressure should be used to combat transnational organized crime.” Blocking the flow of funds through public-private cooperation, sanctioning and punishing fraudulent organizations, and constructing an information-sharing system are becoming core strategies.

To prevent Pig-butchering scams, one must be vigilant about several warning signals: quickly expressing feelings after meeting online, avoiding disclosing personal information, emphasizing zero-risk high-return investments while soliciting funds, and other typical tactics. Special caution is required when asked to remit money under the pretext of an “emergency” or “high-yield certificate.”

Pig-butchering scams are not just simple fraud. They are rising as a real national security challenge that tests the transparency of blockchain and the cooperation of the international community.