How crypto scammers used dating apps to steal $36.9M and launder it to Cambodia

Key Points

1. In 2023, Americans lost over $5.6 billion in crypto scams, with 71% being investment-related and romance scams (pig butchering) being the most prominent.

2. Scammers like Jose Somarriba and Shengsheng He used fake crypto businesses (e.g., Axis Digital) and offshore bank accounts to launder stolen funds, funneling them to Cambodia.

3. The DOJ seized over $225 million in crypto tied to pig butchering scams, involving 400+ victims and fraudulent investment platforms, with Tether aiding in investigations.

4. Stablecoins like USDT are preferred for laundering due to minimal scrutiny, with transactions linked to sanctioned entities and Telegram-based laundering rings.

5. Criminal networks like Huione Group overlap with geopolitical actors, serving as a hub for cybercriminals, including North Korean-linked groups.