Binance Partners with Indonesia to Uncover $200K Pig Butchering Scam

Indonesia’s Criminal Investigation Agency (Bareskrim) has successfully dismantled a significant scam operation with the assistance of Binance and Tokocrypto. This initiative has resulted in identifying multiple suspects and recovering around $200,000 in illicit funds.

Binance emphasises its dedication to collaborating with global law enforcement agencies. In 2023, its Financial Intelligence Unit (FIU) responded to 58,000 law enforcement requests, up from 50,000 in 2022, highlighting its proactive approach to tackling financial crimes.

Crackdown on Pig Butchering Scheme

The investigation commenced in November 2023, targeting a suspected crypto trading website involved in a pig butchering scam. This deceptive scheme entices victims into investing based on false pretences. Authorities have arrested several individuals linked to managing the scam accounts and confiscated around 50 mobile phones along with numerous local bank cards. However, the suspects did not cooperate when questioned about their crypto wallets.

Forensic Analysis Uncovers Evidence

Bareskrim investigators employed forensic analysis to trace wallet addresses associated with the suspects. They utilised supporting evidence from communications on platforms such as Telegram. Screenshots of these chats revealed key wallet addresses that connected the suspects to the fraudulent activities. After Tokocrypto referred the case to Binance’s FIU, authorities were able to conduct further investigations, freeze assets, and seize funds from the suspects' accounts. The seized amount of $200,000 has since been transferred to law enforcement.

Preventing Crypto Scams

In light of the increasing number of crypto scams, Binance has issued warnings about fraud schemes promising high investment returns. The exchange stresses that blockchain transactions are both anonymous and irreversible, underscoring the importance of conducting thorough research to verify project legitimacy.

Binance has provided tips to help individuals identify potential scams. They caution that projects claiming unrealistic returns are often fraudulent, and a surge of participants in a project does not necessarily validate its authenticity.