Myanmar-based 'scammers' steal over $100 mn in crypto payments in less than 2 yrs: Report

New Delhi, Feb 25 (IANS) – A shocking report has been released revealing that a single Chinese company operating in Myanmar has defrauded people of more than $100 million in less than two years. Researchers from Chainalysis tracked Tether tokens used in romance scams, with payments being made to a company in KK Park, eastern Myanmar.

The victims of these scams were families of trafficking workers who were forced to pay ransoms for their release. Eric Heintz, a global analyst at International Justice Mission, US, highlighted the possibility of proceeds from scams being mixed with ransom payments. The report uncovered that the Chinese company managed to transfer over $100 million in cryptocurrencies to just two digital wallets.

KK Park, described as one of the largest romantic scam compounds, is known to have over 2,000 trafficked romance scam workers. The FBI’s 2022 IC3 Report revealed that in the same year, US citizens reported losses of over $700 million to romance scams involving both cryptocurrency and fiat, along with nearly $2.5 billion to various crypto investment scams.

This alarming revelation sheds light on the pervasive nature of romance scams and the significant financial losses incurred by victims. The use of digital currencies like Tether for illicit activities further underscores the importance of regulating the cryptocurrency market to prevent such fraudulent schemes. The authorities must take action to bring justice to the victims and hold the perpetrators accountable for their actions.