The Financial Crimes Enforcement Network (FinCEN) is warning investors not to fall prey to a burgeoning virtual currency investment scam.

"Pig butchering" has duped billions of dollars out of victims. Amidst the increasing instances of crypto-related frauds, the upcoming Benzinga's Future of Digital Assets conference on Nov. 14 is expected to address and shed light on such vulnerabilities in the digital assets sector.

“This scam has impacted far too many Americans, which is why FinCEN is sounding the alarm and asking financial institutions to report suspicious activity indicative of this scheme," Himamauli Das, acting director of FinCEN, commented on the urgency of the situation.

He emphasized the pivotal role of Suspicious Activity Reports by financial institutions, highlighting their potential to assist victims and aiding law enforcement in apprehending the culprits.

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Drawing parallels to the practice of fattening a hog for slaughter, the "pig butchering" scams see victims investing in what they believe are genuine virtual currency opportunities, only to be subsequently swindled.

The scammers, referring to their targets as "pigs," use fabricated identities, the facade of potential romantic relationships, and intricate narratives to gain the victim's trust.

The end goal is to deceive them out of their assets, a process referred to as "butchering".

Notably, these fraudulent activities are predominantly orchestrated by criminal groups based in Southeast Asia, often using labor trafficking victims to reach out to unsuspecting individuals globally.

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