Elliptic Warns of Industrial-Scale Pig Butchering Scams Laundering Through Crypto

Pig butchering scams, a sophisticated form of romance fraud, have evolved into a multibillion-dollar industry, according to Elliptic's 2025 Typologies Report. Victims are groomed into funneling money into fraudulent crypto investment schemes, with stolen funds laundered through increasingly organized methods resembling professional financial operations.

Scammers consolidate victims' deposits into self-hosted wallets before obfuscating transaction trails through cross-chain bridges or payment processors. Regulated platforms are exploited via mule accounts displaying red flags—shared addresses, repetitive IP logins, and patterned transfers. Compliance photos reveal call-center operations in Southeast Asia, where these scams often originate.

Blockchain's inherent transparency provides regulators with tools to track illicit flows despite scammers' tactics. The report highlights crypto's dual-edged nature: while transaction visibility aids detection, the industry remains a prime target for large-scale financial crime.