The Digital Chamber Backs New Bill Tackling Pig Butchering Schemes

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Julia Smith

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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Last updated:

September 23, 2024 13:08 EDT

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The Digital Chamber announced its support on September 20, 2024, for a new bipartisan bill introduced by Congressman Zachary Nunn (R-IA), which addresses financial fraud, including pig butchering schemes.

The bill, named the “Empowering Law Enforcement To Combat Financial Fraud Act,” seeks to provide law enforcement with the necessary tools to fight these sophisticated scams.

The Digital Chamber Supports New Rep. Zachary Nunn Bill

U.S. lawmakers Josh Gottheimer (D-NJ) and Scott Fitzgerald (R-W) co-lead the effort behind this proposed legislation, which would allocate grant funds to state, local, and tribal agencies investigating financial fraud scams.

These scams disproportionately affect society’s most vulnerable populations, and the bill would enhance the resources available to law enforcement agencies tasked with combating such crimes.

“Financial fraud crimes increasingly involve sophisticated technology to scam Americans out of their hard-earned dollars,” said Rep. Fitzgerald. “I am proud to co-lead the Empowering Law Enforcement to Combat Financial Fraud Act which will give state and local law enforcement the resources they need to utilize blockchain to track criminals who attempt to defraud Wisconsin seniors and families.”

The proposed legislation would explicitly look into pig butchering schemes, a common tactic used by digital asset fraudsters wherein they exploit their victims’ trust to increase the amount of funds a given victim will send to them.

According to a September 9 press release from the bipartisan group of lawmakers, even the American Association of Retired Persons (AARP) has issued warnings about these types of scams.

“As the blockchain and digital asset industries evolve, so do the tactics of those exploiting these technologies for illicit purposes,” The Digital Chamber said in a statement. “This Act appropriately addresses the need for clearer guidelines, enhanced resources, and better tools for State, local, and Tribal law enforcement agencies to combat complex financial crimes, including “pig butchering” scams.”

All Eyes On Pig Butchering Scams

A recent report from blockchain analytics firm Chainalysis highlighted that pig butchering schemes have been the largest revenue-generating scam so far this year.

More traditional fraud tactics, like Ponzi schemes, have been overshadowed by these and other divisive strategies, particularly in the realm of digital assets.

In November 2023, Tether froze an estimated $225 million of its stablecoin after reports indicated that the funds were linked to a human trafficking collective in Southeast Asia.

A February 2024 study by the University of Texas at Austin revealed that pig butchering scammers have stolen over $75 billion in cryptocurrencies since the start of the pandemic.

With pig butchering scams continuing to rise, the success of this bill could play a pivotal role in shaping how law enforcement tackles digital asset fraud in the years to come.