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Cryptocurrency-based romance scams known as “pig-butchering” have evolved from a consumer fraud problem into a national security threat involving human trafficking and organized crime networks generating $9.9 billion annually, blockchain analytics firm Chainalysis warned this week.
In a recent podcast, Chainalysis head of national security intelligence Andrew Fierman and former prosecutor Erin West detailed how these fraud operations increasingly operate from trafficking-run compounds in Southeast Asia, where workers are often coerced into running elaborate investment scams that target victims worldwide through fake crypto trading platforms.
West emphasized the need for broader public awareness, saying, “So if anybody is touching money in any way, you’re part of this. So you need to be prepared to understand the threat and the gravity of what’s happening on a national security level.”
Her remarks underline why the USDUSD scam model is attracting new scrutiny from law enforcement agencies across multiple regions.
Pig-butchering scams involve long-term manipulation, typically starting with criminals posing as friends or romantic partners before introducing victims to fake crypto investment platforms.
The aim is to “fatten” the victim with trust before the final “butchering”—full financial extraction. According to West, “Once this happens to you, you will be put on a list […] and you are even more likely to get hit up again.”
On the podcast, Fierman and West described a vast USDUSD network of trafficking-run compounds in Southeast Asia where workers—often lured or forced into participation—are tasked with orchestrating these scams. These operations push targets toward fraudulent crypto dashboards designed solely to drain funds.
Chainalysis data shows the accelerating scale of the USDUSD trend. In 2023, the United States Department of Justice seized about $112 million linked directly to pig-butchering networks. A February Chainalysis report also found the USDUSD scheme expanded by nearly 40% year-over-year in 2024, contributing to more than $9.9 billion in total crypto-related scam revenue.
Fierman noted that despite the complexity of the USDUSD ecosystem, blockchain transparency can still provide avenues for disruption. “One of the benefits of the blockchain… is that there is potential opportunity for disruption if it’s enabled right,” he said. He cited the ability to track USDUSD-linked funds to cash-out points as a crucial intervention window.
The United States and Asian law-enforcement agencies have launched new initiatives aimed at undermining the infrastructure behind pig-butchering. On Nov. 12, the DOJ announced a new “Scam Center Strike Force” targeting Chinese-linked organizations running USDUSD crypto-investment fraud operations across Southeast Asia.
Meanwhile, coordinated action in the Asia-Pacific region has also accelerated. On Aug. 27, APAC law-enforcement agencies partnered with Chainalysis, OKX, Tether and Binance to freeze $47 million tied to USDUSD scam operations. Officials increasingly focus on blocking the on-ramp and off-ramp channels through which criminals attempt to move and clean illicit funds.
West said the multi-front strategy must remain aggressive: “My advocacy about transnational organised crime has been consistently: Use every tool in our arsenal. Sanctions, indictments, diplomatic pressure.”
The global sweep illustrates how the USDUSD model has outgrown traditional fraud responses, requiring international collaboration to dismantle the financial pipelines sustaining pig-butchering operations.
Experts say that despite the sophistication of these networks, many USDUSD scams still follow recognizable behavioral patterns. Red flags include sudden displays of affection from online contacts, unwillingness to share verifiable personal or professional information, and requests for money framed as emergencies or “risk-free opportunities.”
Another hallmark of USDUSD scams is the use of fabricated screenshots showing false profits to lure victims into investing. Once victims lose funds, criminals often attempt a second extraction through fake “recovery firms,” promising to help retrieve losses while siphoning even more money.
As regulators and law-enforcement agencies continue tightening pressure on these networks, analysts stress that public awareness remains an essential defense. The evolving USDUSD model—combining social manipulation, trafficking, and crypto laundering—demands vigilance from individuals, platforms, and institutions alike.
