Investigators have uncovered a staggering $100 million in cryptocurrency payments linked to a scam syndicate operating out of Myanmar. This syndicate, based in the notorious KK Park compound, has been involved in conducting romance scams and extorting ransom payments from families of trafficked workers. A joint investigation conducted by Chainalysis and International Justice Mission reveals the complex interplay between cyberfraud and human trafficking within KK Park, where thousands of workers are reportedly held against their will.
The investigation began when Eric Heintz of International Justice Mission provided Chainalysis with two cryptocurrency addresses associated with ransom payments made by trafficked victims’ families. These addresses were traced to a Chinese front company linked to the scamming gang operating out of KK Park. Since their creation in July 2022, one address has received $24.2 million from scam-associated wallets, while the second address has also received payments, likely from romance scams.
The payments received by these addresses are believed to include ransom payments extorted from the families of trafficked workers, with victims often paying exorbitant sums to secure their release. This revelation sheds light on the significant profits made by pig butchering scammers operating within KK Park, highlighting the urgent need to address the exploitation of vulnerable individuals and combat the growing menace of cyberfraud and human trafficking. The cryptocurrency ecosystem is beginning to take action, with Tether freezing $225 million in USDT tokens connected to a pig butchering syndicate in collaboration with the U.S. Department of Justice.
