“Pig Butchering” scams move billions in crypto fraud, reveals Elliptic report

The type scams “Pig Butchering” They have ceased to be makeshift fraud to become a billionaire business in the crypto world. This is one of the conclusions to which the report reached Typologies Report 2025 of the analysis firm Blockchain Elliptic, highlighting that the emotional ties that the scammers build with the victims open the door so that the latter fall into scams, which are increasingly lucrative for bad actors.

Elliptic It details that these operations have climbed into complexity and coordination, most and more resembling professional financial processes. Their researchers found advanced organization patterns and technologies designed to hide the traceability of stolen funds, taking advantage of the cross -border characteristics of the crypto ecosystem.

The report identifies that the scammers group the deposits of the victims in autocustodia wallets, used exclusively to consolidate and move funds. From there, money flows through multiple transactions, often crossing block chains using bridges (Cross-Chain Bridges) or payment services that provide an appearance of legitimacy.

Sophisticated methods for funding

A central element described by Elliptic is the use of accounts “Mulas” on regulated crypto platforms. These accounts usually share suspicious patterns such as identical residential addresses, repeated IP and constant transfers. When operating in this way, scammers blur the real origin of money and hinder detection by authorities and exchange platforms.

In addition, photos delivered in verification processes Kyc They show operators working in calls or wineries in Southeast Asian countries, where many of these frauds originate. This finding reinforces the idea that “Pig Butchering” It is an organized industry with its own infrastructure.

The transparency inherent to blockchain technology, however, offers advantages to regulators. Although scammers strive to hide their trail, transactions leave public records that can be analyzed to identify illegal activities and dismantle networks.

Implications beyond fraud

The report of Elliptic It emphasizes that this phenomenon is just a piece of the puzzle. The firm warns that individuals and entities under official sanctions are increasingly resorting to Stablecoins to make international transfers. This finding suggests that the risks of money laundering and evasion of regulatory controls extend beyond “Pig Butchering” and affect the crypto ecosystem as a whole.

For experts, the combination of advanced fund washing methods and the growing use of stable currencies highlights the need for international cooperation and new monitoring tools. Regulators and platforms could use deeper analysis to track patterns and stop these practices.

The growth of this criminal industry raises challenges for both regulators and users. Victims are usually attracted to promises of high yields and personal relationships, which makes it difficult to recognize alert signals.

Elliptic It emphasizes that crypto platforms must reinforce their compliance and surveillance controls, while users must be attentive to offers too good to be truth and contacts that request unsecured transfers. Blockchain transparency provides new tools, but its effectiveness depends on the cooperation and rapid response of all actors in the sector.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of UNSPLASH.

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