Last year, #Binance collaborated with @UNODC to hold a workshop in Laos to combat illegal activities. Binance has shared knowledge about the "pig butchering" scam and has provided insights to over 25 law enforcement agencies about the illegal practices. We are committed to protecting users.
Collaboration between Binance and UNODC
Binance has worked with the Drug Enforcement Administration and the United Nations Office on Drugs and Crime (UNODC), which is a crucial agency of the United Nations involved in combating transnational crime, drug trafficking, and illicit financial flows.
This collaboration took place in the form of a workshop held in Laos, with the main objectives being to provide knowledge and train officials from various enforcement agencies in the country. The content of the training heavily focused on the use of blockchain technology and digital assets to prevent and combat illegal activities.
What is the "Pig Butchering" scam?
In the meeting, there was a discussion about a type of fraud called "Pig Butchering" which is a term derived from the Chinese phrase "杀猪盘" (shā zhū pán) meaning "pig trough". This scam has the following characteristics:
🔹 Build relationships: Scammers will spend weeks or even months building relationships with victims through online channels such as: dating apps, social media, or messaging. They will create profiles that appear trustworthy and engaging.
🔹 "Raising pigs" with confidence: After gaining the trust of victims, scammers will start encouraging them to invest in digital assets or fraudulent investment platforms, claiming to offer high returns.
🔹 "Me" when ready: Initially, victims might see a fake profit displayed on their platform and can withdraw a small amount to build trust. But when victims are more trusting and invest larger amounts, scammers will disappear with all the money, and victims will not be able to withdraw funds again.
Why is it called "Pig Butchering"? Because scammers compare victims to "pigs" that will be "raised" (by building relationships and giving hope for profits) before being "slaughtered" (taking all their money).
Why is this collaboration important?
🔸 Possible transnational crime: The scam and illegal activities in the digital world often occur at an international level, making the enforcement actions of law enforcement agencies reliant solely on local laws a challenging issue.
🔸 Specialized expertise: Binance, as a company specialized in blockchain and cryptocurrency, has data and analytical tools that can assist law enforcement in tracking the financial trails of potential criminals.
🔸 Protecting users: Providing knowledge to officials in different countries helps enhance capabilities to prevent and combat potential financial crimes, eventually leading to safer environments for users in the digital asset industry overall.
Collaboration with UNODC and training in various countries, such as Laos, is an important part of Binance's strategy to demonstrate commitment to creating a safer environment and trust in the digital world.
