Don't let the little investors fall for the pig-butchering scheme!!!
Unveiling the money laundering methods of the pig-butchering scam through virtual currency trading
1. Money laundering through decentralized cryptocurrency exchanges
In the early stages of the money laundering process, criminals involved in the pig-butchering scam use decentralized exchange (DEX) platforms to swap cryptocurrencies and tokens and utilize cross-chain bridges, especially Tokenlon.
2. Stablecoin money laundering
1. In the pig-butchering scam, criminals also use asset-backed stablecoins for money laundering. These stablecoins are cryptocurrencies that are pegged to the value of other tradable assets (such as fiat currencies like the US dollar). Bitcoin, Ethereum, USDC (ERC-20), USDT (ERC-20 or TRC-20).
3. Money laundering through Tokenlon
1. Exchange and cross-chain bridge
In the pig-butchering scam, criminals almost always specifically use the decentralized cryptocurrency exchange Tokenlon to convert cryptocurrencies such as Bitcoin, Ethereum, and USDC into USDT.
2. Ethereum USDT/USDC/DAI exchange
In the initial stage of money laundering, criminals participating in the pig-butchering scam will transfer Ethereum from their wallets into the corresponding Tokenlon smart contract and automatically receive USDT, USDC, or DAI in return within the same transaction.
3. Bitcoin USDT exchange
4. Money laundering through money mules and money mule accounts
"Money mules" refer to individuals who receive third-party funds through personal accounts, transfer them to other accounts, and earn commissions from it.
