Chainalysis has revealed findings about KK Park, Myanmar's notorious pig slaughter facility. $100 million was stolen from the facility by forcing employees' families to transfer cryptocurrencies.
There are believed to be around 2,000 trafficked workers there. The report details how the facility extorted families of trafficked workers. This was done by demanding cryptocurrency in exchange for the freedom of their loved ones.
$100 million in crypto stolen in romance scam
A recent Chainalysis report indicates that two ransom wallet addresses are associated with a Chinese front company belonging to a pig slaughtering organization operating out of KK Park.
“We know that they receive cryptocurrency payments from fraud victims. However, Heinz also said that pig slaughter organizations do not provide any compensation to the families of trafficked workers. He said he often instructs victims to pay a ransom in exchange for the freedom of his family, often in virtual currency.
Chainalies presents a graph outlining that two main ransom addresses are receiving the majority of the funds. One of these addresses receives funds from scams such as pig slaughter schemes.
Meanwhile, the other person receives cryptocurrency from the family of a human trafficking victim.
The estimated total value of the two wallets is over $100 million.
However, Chainaracy was unable to confirm the proportion of ransom payments and fraud.
Read more: 15 Most Common Crypto Scams to Watch Out for
However, given that these are just two addresses of a single company operating within KK Park, Chainalysis said: “Overall, pig slaughter fraudsters operating within the premises are reaping significant profits.” I am adamant.
Escape from Romance Cryptocurrency Scams poses challenges for workers
Other reports say KK Park's remote location in Southeast Asia makes it extremely difficult for workers to flee the site. The only option is for the family to agree to a ransom demand, which often includes cryptocurrency.
However, many workers who eventually got there were unaware of the true nature of the situation. Some believed they were accepting legitimate job offers.
Meanwhile, the cryptocurrency industry remains focused on fraud, and the amount stolen from victims has increased significantly.
This is partly due to the global adoption of digital assets.
Read more: How to identify fraudulent crypto projects
On January 30, BeInCrypto reported that the US Department of Justice had indicted three individuals for their involvement in a fraudulent crypto scheme. They face charges that they defrauded individuals out of approximately $2 billion.
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