Myanmar-based scammers stole $100m worth of crypto since 2022, Chainalysis says

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Chainalysis report reveals Myanmar-based romance scammers amassing $100 million in crypto, underscoring the nexus between illicit actions and digital property.

A felony gang primarily based in Myanmar has netted $100 million price of crypto from victims over the previous two years by exploiting pig butchering schemes, the place scammers are tricking victims into pretend relationships and convincing them to speculate cash into crypto.

In response to a brand new report from Chainalysis, felony gangs working out of Myanmar, notably from the KK Park compound within the city of Myawaddy. The compound, reportedly housing 1000’s of trafficked staff, serves as a hub for love scams, with victims subjected to brutal working circumstances and coercive ways to fulfill scamming quotas.

“The circumstances these folks face are horrible. They’re compelled to work 12 or extra hours per day, and in the event that they don’t meet quotas on contacting potential rip-off victims, the gangs beat them, torture them, and even withhold meals.”

Eric Heintz, international analyst on the World Fusion Heart of the Worldwide Justice Mission

Chainalysis’s examination of ransom addresses linked to pig butchering gangs uncovers important sums of crypto, highlighting the profitability of those illicit actions.

Myanmar-based scammers stole $100m worth of crypto since 2022, Chainalysis says - 1
On-chain exercise of addresses related to Myanmar felony gangs | Supply: Chainalysis

Whereas current efforts by legislation enforcement businesses have achieved some success in combating these crimes, the pervasive nature of the issue calls for “urgency to fixing the issue of romance scamming,” Chainalysis says.

In November 2023, the U.S. Division of Justice (DoJ) alongside Tether, seized $9 million price of USDT from a felony group using romance schemes to swindle unsuspecting American buyers out of their crypto holdings. The DoJ stated the property rightfully belonged to over 70 victims of pig butchering. As of press time, Tether blacklisted practically 1,300 crypto wallets related to illicit exercise, in response to knowledge from CCData.

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