US loses 2.6 billion baht in a year! Transnational Ponzi scheme: Chinese businessmen collude with Southeast Asia's cryptocurrency financial network

Reuters reported on the "boiler room" cryptocurrency scam, revealing a sophisticated global fraud operation.

Rapid Understanding of Major Cross-Border "Pig Slaughtering" Case

• Main Figures: Wang Yicheng, a Chinese businessman and the vice president of a Chinese Chamber of Commerce in Thailand, is associated with a cryptocurrency account that received over $90 million, including $9.1 million related to fraudulent activities.
• Modus Operandi: The scam involved creating websites designed to resemble legitimate trading platforms, establishing online trust with victims, and luring them into fake cryptocurrency investments.
• Impact on Victims: These "pig slaughtering" scams have caused significant financial losses globally. In the US, victims lost up to $2.6 billion in one year. For instance, a 71-year-old man from California lost $2.7 million and faced severe financial consequences.
• Complex Operations: It is just a part of a larger money laundering network. Wang Yicheng's cryptocurrency account is just one node in this network.
• Southeast Asian Scam Hub: Investigations revealed that these "pig slaughtering" scams are linked to an industrial park, KK Park, on the Myanmar-Thailand border known for human trafficking and online fraud.
• International Actions: Crackdown operations have been launched in China, Thailand, and Myanmar.

Chinese Businessman Colludes with Thai Officials in Cross-Border Fraud: Cryptocurrency Plays a Vital Role

Reuters investigated the sinister world of Asia-led "pig slaughtering" scams that defrauded billions globally.

Chinese Businessman Wang Yicheng Targeted by FBI

The central figure of this scam network is Wang Yicheng, a Chinese businessman and vice president of a prominent trade group in Thailand. Reuters revealed that Wang's cryptocurrency account received over $90 million, with at least $9.1 million directly linked to these scams. Suspiciously, his connections with law enforcement and political elites in Thailand raise eyebrows.

At a January FBI cyber fraud conference, the elaborate Southeast Asian online fraud was detailed, listing Wang Yicheng as a beneficiary of the fraud and targeting his encrypted wallet.

Wang Yicheng's $80 Million Cryptocurrency Wallet with Official Friends

According to the identity cards used to register the cryptocurrency account, Wang Yicheng was born in 1982 in Ningbo, China.

Activity in Wang Yicheng's cryptocurrency account surged from November 2020 to November 2022, with deposits rapidly growing, some exceeding $100,000. By 2021, his influence within the Thai-China Economic Exchange and Trade Association increased. The association shared offices with a group associated with one of China's largest criminal organizations, the 14K Triad. Wang Yicheng had numerous connections with officials from Thailand and China, raising suspicions about official knowledge or involvement in these scams.

By 2022, the funds in Wang Yicheng's account ballooned to nearly $79 million, highlighting the massive scale of these operations. These funds were transferred through multiple wallet layers, making tracking intricate.

Large Amounts of Illicit Funds Flow into Wang Yicheng's Account

According to blockchain analysis firm Coinfirm, between June 26, 2022, and October 23, 2022, over $102,000 from a fraudulent group's wallet was deposited into Wang Yicheng's account. Almost all the cryptocurrency deposited into Wang Yicheng's registered account was moved to other wallets.

Coinfirm stated that from January 2021 to October 2022, approximately $87.5 million was transferred to nearly 50 other cryptocurrency wallets, including at least five registered with regional cryptocurrency exchanges.

Relationship Between Wang Yicheng and Bitmain?

Wang Yicheng had ventures in both China and Thailand, from selling electronic products to bird's nests. By 2018, he became a partner in the Thai branch of the Chinese mining company Bitmain. However, Bitmain told Reuters that he was not an employee but a close partner.

Did Wang Yicheng Use a Binance Account?

According to financial records obtained by Reuters, the cryptocurrency account registered in November 2020 was with the Binance exchange and accessed from Bangkok. On November 3, 2022, activity in Wang Yicheng's cryptocurrency account abruptly ceased. Coinfirm indicated that the transfer patterns to the account suggest Binance may have started an investigation and frozen the account. Binance stated that it is committed to combating "pig slaughtering" scams, assisting law enforcement in identifying, freezing, and confiscating criminal assets, providing investigation training, and engaging in crime prevention activities.

Binance founder Zhao Changpeng resigned on Tuesday and admitted to violating US anti-money laundering laws, reaching a $4.3 billion settlement. US authorities stated that over five years, Binance processed transactions involving users' criminal proceeds from activities like fraud.

Binance founder Zhao Changpeng agreed to resign and reach a settlement; Binance was fined $4.3 billion

Fake "Emma" Scams 71-Year-Old Californian Using Fake Exchanges

A 71-year-old Californian man gave his $2.7 million savings to a fraudster posing as a young woman named "Emma." This is a typical scam operation, where scammers build trust through online chats and lure victims into investing in fake cryptocurrency exchanges.

In the US alone, victims lost over $2.6 billion last year, more than double the previous year. The psychological impact is equally devastating, with some victims opting for suicide due to financial losses.

Limited Impact of Crackdown Operations, Difficulty in Tracing Money Laundering Networks: Wang Yicheng is Just One Node

Despite increasing international enforcement attention on these operations, the masterminds behind the scenes remain mostly elusive.

The complexity of these schemes, including money laundering networks and intricate financial transactions, further complicates tracking the beneficiaries. For example, Wang Yicheng's account is just one node in a broader money flow network, but whether he is the ultimate recipient of the funds remains unclear.