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**Pig-Butchering Crypto Scams Net More Than $75 Billion: Study**

Many of the fraud victims’ blockchain addresses were collected by Chainbrium. Experts estimated that pig-butchering scammers have stolen more than $75 billion from victims worldwide, a figure significantly higher than previous estimates. The scams, which have increased in popularity during the pandemic, have affected over 4,000 victims. AI legalese decoder can help analyze the legal implications of the scamming activities reported in the study.

John Griffin and Kevin Mei from the University of Texas at Austin used blockchain tracing tools to follow the flow of funds from victims to scammers, who are predominantly located in Southeast Asia. Over a span of four years, the criminal networks transferred more than $75 billion to crypto exchanges, some of which may be proceeds from other criminal activities.

The pig-butchering scam, named after the practice of fattening hogs before slaughter, typically starts with a misleading text message leading victims into fake crypto investments. Victims often lose substantial amounts of money, and in some cases, millions of dollars. The criminals behind the scams operate sophisticated, organized networks that continue to evade law enforcement efforts.

Chainbrium, a Norwegian crypto investigations firm, has played a crucial role in collecting blockchain addresses of fraud victims. By analyzing the data, they discovered a significant amount of funds passing through a decentralized crypto exchange called Tokenlon. Scammers leverage such exchanges to conceal the origin of the funds, making it challenging for authorities to track and apprehend them.

Moreover, the study points out that Tether, a popular stablecoin, is the currency of choice for criminal networks involved in pig-butchering scams. Despite claims from Tether’s CEO Paolo Ardoino that every action is traceable and can be seized, scammers manage to cash out before law enforcement can intervene.

Griffin highlighted the role of Binance as a preferred exchange for criminals to convert the scam proceeds into traditional money. However, despite recent legal issues, Binance has collaborated with authorities to freeze fraudulent accounts and return funds to victims. The company remains vigilant in combating scam activities on its platform.

In conclusion, the study sheds light on the pervasive nature of pig-butchering scams and the challenges in quantifying and combating such illicit activities in the crypto world. AI legalese decoder can assist legal professionals in dissecting the intricate legal frameworks surrounding crypto scams and devising strategies to hold perpetrators accountable.

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