New York, NY, Tuesday, March 5, 2024 – A Myanmar-based company is suspected to be at the center of a massive cryptocurrency scam exceeding $100 million, according to a report published by blockchain analysis firm Chainalysis on February 24, 2024.1
The company, operating from a notorious compound known as KK Park in Myawaddy, Myanmar, is believed to be involved in “pig butchering” scams, a form of romance scam where victims are lured into fake online relationships before being pressured to invest in fraudulent cryptocurrency schemes.
Chainalysis researchers, in collaboration with the Global Fusion Center of the International Justice Mission (IJM), identified two cryptocurrency addresses linked to the company. These addresses reportedly received ransom payments from families of human trafficking victims forced to work in the scam operation, along with funds directly from scam-associated wallets.
While the exact breakdown between ransom payments and scam proceeds remains unclear, the total combined inflow to these addresses since July 2022 is estimated to be close to $100 million.
The report highlights the brutal conditions endured by victims trafficked into these compounds. They are reportedly forced to work long hours and face violence if they fail to meet quotas for contacting potential scam victims.
This case underscores the growing concern over the intersection of cryptocurrency and human trafficking. Law enforcement agencies are taking steps to address this issue, with recent examples including a joint US Department of Justice investigation that froze $225 million in USDT linked to a Southeast Asian human trafficking ring, and a South Korean-led Interpol operation that seized $100 million in digital assets from online scammers.
The Chainalysis report urges cryptocurrency businesses to be vigilant in identifying potential exposure to such activities and to report any suspicious information to law enforcement.
