Chainalysis says pig-butchering is becoming national security threat
Pig-butchering scams long-con schemes that groom victims into fake crypto “investments” have grown into a cross-border enterprise intertwining trafficking, money laundering and digital assets.
In a recent podcast, Chainalysis’ Andrew Fierman and Operation Shamrock founder Erin West said the trend is now a national security concern, as criminals industrialize outreach from dormitory-style compounds and exploit crypto rails at scale. The Chainalysis says pig-butchering is becoming national security threat assessment aligns with new U.S. enforcement actions and regional freezes.
Scope and scale of the scam
Fraud rings operating across Southeast Asia recruit or traffic workers to run scripted outreach, build trust via romance/friendship, then steer victims to phony trading platforms before draining funds. Chainalysis’ 2025 insights estimate crypto scam revenue surpassed $9.9 billion in 2024, with pig-butchering revenue up nearly 40% YoY.
Authorities have repeatedly seized funds: the DOJ seized about $112 million tied to pig-butchering in 2023 and filed a $225 million forfeiture case in June 2025 targeting laundering networks linked to such schemes.
Why it’s a national security issue
Fierman and West argue the model has matured into a transnational crime ecosystem that blends organized crime, trafficking, and crypto-based laundering. That complexity and the volume of U.S. victims—raises national security implications, from cross-border coercion to the use of proceeds by criminal groups.
Government response intensifies
Chainalysis says pig-butchering is becoming national security threat
On Nov. 12, 2025, the U.S. Attorney for D.C., alongside DOJ, FBI and the U.S. Secret Service, unveiled the Scam Center Strike Force to dismantle overseas pig-butchering operations, coinciding with Treasury sanctions on Burma-linked scam networks. The initiative focuses on disrupting scam compounds, seizing assets and coordinating sanctions and criminal cases. Justice Department+1
Regional actions mirror this shift. On Aug. 27, 2025, APAC law enforcement—working with Chainalysis, OKX, Tether and Binance froze $47 million in related funds, underscoring the impact of public-private partnerships.
Chainalysis says pig-butchering is becoming national security threat at the cash-out
Fierman notes blockchain transparency can enable earlier disruption—especially at cash-out points if regulators, VASPs and exchanges coordinate to flag and freeze suspicious flows.
Victims are often targeted twice
Experts warn victims may face “double-tap” schemes: after the initial loss, imposters pose as “recovery” services to extract more money or data. West says victims are often listed and targeted again, heightening the harm.
Red flags and indicators (romance + investment)
Rapid emotional escalation; pressure to move conversations off platforms.
Reluctance to share verifiable personal/professional details.
Promises of risk-free or guaranteed returns, plus fabricated profit screenshots.
Requests to deposit into unfamiliar “brokerage/exchange” sites or to keep the “opportunity” secret.
(Indicators synthesized from DOJ, Chainalysis and enforcement alerts.)
Context & Analysis
The strike-force model, paired with sanctions and targeted freezes, indicates a pivot from piecemeal cases to coordinated disruption of compound operators and their off-ramps. For VASPs, enhanced screening for scam-pattern typologies and rapid-response playbooks at cash-out are now core compliance functions.
Conclusion
As pig-butchering scams continue to grow, authorities are moving toward a comprehensive, whole-of-government approach. By partnering with private sector players, regulators aim to target laundering networks and dismantle the compounds that facilitate these schemes. The shift reflects an understanding that tackling such fraud requires coordinated action across multiple agencies and industries.
Success in reducing losses will depend heavily on ongoing collaboration and careful monitoring of cash-out points. Vigilance at the moment funds are withdrawn is crucial, as it is often the last line of defense against scammers profiting from unsuspecting victims.
FAQs
Q : What is pig-butchering?
A : A long-con where scammers groom victims online, then funnel them into fake crypto platforms to steal funds.
Q : Why do experts say it’s a national security issue?
A : Because it blends organized crime, trafficking, and cross-border laundering that targets U.S. victims at scale.
Q : What did the U.S. announce on Nov. 12, 2025?
A : A Scam Center Strike Force led by the U.S. Attorney for D.C., alongside sanctions on Burma-linked networks.
Q : How big is the problem financially?
A : Chainalysis estimates crypto scams took in $9.9bn in 2024, with pig-butchering up ~40% YoY.
Q : What funds have been seized so far?
A : DOJ seized about $112m in 2023; in 2025 it filed a $225m forfeiture complaint connected to investment scams.
Q : Where are these operations based?
A : Many compounds are in Southeast Asia (e.g., Myanmar/Burma, Cambodia, Laos), targeting overseas victims.
Q : Does blockchain transparency help stop it?
A : Yes coordinated analytics and VASP controls can disrupt scams at on/off-ramps and cash-out points.
Facts
Event
Authorities and experts warn pig-butchering scams now pose national security risks; U.S. launches Scam Center Strike Force; APAC freezes $47m.Date/Time
2025-11-14T12:00:00+05:00Entities
Chainalysis; Andrew Fierman; Erin West (Operation Shamrock); U.S. DOJ; U.S. Attorney for D.C.; OFAC; APAC law enforcement; OKX; Tether; Binance.Figures
$9.9bn (2024 crypto scam revenue); ~40% YoY increase (pig-butchering); $112m (DOJ seizure, 2023); $225m (forfeiture filing, 2025); $47m (APAC freeze).Quotes
“You need to be prepared to understand the threat … on a national security level.” Erin West (podcast). Apple PodcastsSources
Chainalysis blog; DOJ press releases; CoinDesk coverage of strike force; Chainalysis/APAC freeze post. Chainalysis+3Chainalysis+3Justice Department+3