The Most Dangerous Crypto Scam in the World

Summary

The video script narrates the alarming rise of cryptocurrency scams, particularly those originating from Asia, which have led to significant financial losses for victims. It details the modus operandi of these scams, often involving the establishment of personal relationships through social media before introducing the victim to fraudulent investment opportunities. The narrative follows a victim who lost $1.2 million after being lured into a binary options trading platform called Genesis Bit. The script also delves into the criminal operations behind these scams, revealing the use of forced labor and human trafficking to staff scam centers across Southeast Asia. The story highlights the challenges faced by law enforcement and the need for a global response to combat this multi-billion dollar criminal industry.

Takeaways

• 🚨 **Cyber Scams on the Rise**: The FBI has recorded over $2.5 billion stolen in 2022, a 183% increase from 2021, indicating a rapid rise in cryptocurrency scams.
• 🌐 **Online Platforms for Scams**: Scammers use social media and messaging apps like Telegram, WhatsApp, and Instagram to build trust and introduce victims to scams.
• 💰 **High Returns, High Risks**: Victims are often lured by promising high returns on investment, as illustrated by the Genesis bit trading platform example.
• 📈 **Initial Success, Later Losses**: Scammers allow initial small withdrawals to build trust before the scam is revealed, leading to significant financial loss when larger amounts are requested to be withdrawn.
• 😭 **Personal Impact**: The emotional and financial toll on victims is immense, as seen with the individual who lost $1.2 million, leading to feelings of despair and suicide.
• 🌏 **Organized Crime from Asia**: The scams are run by organized criminal groups, often based in Asia, exploiting weak law enforcement in countries like Cambodia, Myanmar, and Laos.
• 🐷 **'Pig Butchering' Scams**: A specific type of scam where victims are nurtured and then 'slaughtered' for their money once the scammers feel they've invested enough.
• 🔍 **Signs of Scam Centers**: Indicators of scam operations include barred windows, guarded entrances, and proximity to casinos.
• 🇨🇳 **Forced Labor and Kidnapping**: Scammers are known to use forced labor, even kidnapping people to work in their operations.
• 📰 **Investigative Journalism**: The extent of these scams was exposed by investigative journalists, highlighting the conditions and operations within scam compounds.
• 🛡 **International Pressure and Raids**: Despite international pressure and raids on scam compounds, the operations continue with seeming impunity.
• 🤝 **Volunteer Efforts**: Individuals like Emmanuel Sooi are helping to rescue and rehabilitate victims, providing a safe haven and support.
• 📈 **Global Problem Requires Global Solution**: The scale and nature of these scams necessitate a coordinated global response to combat the issue effectively.

Q & A

What was the initial method of communication used by the scammers to contact their victims?

The scammers initially used social media platforms like Instagram, as well as messaging apps such as Discord, Telegram, and WhatsApp to contact their victims.

How did the scammer, Malia Lee, introduce herself to the victim?

Malia Lee introduced herself as a Korean businesswoman from Los Angeles through a direct message on Instagram.

What was the name of the trading platform that the victim was introduced to?

The victim was introduced to a platform called Genesis Bit, which was a binary options trading platform.

What was the initial return on investment that the victim received from the trading platform?

The victim made about $1,200 with a portfolio of about $4,000, which was an incredible return on investment.

How much money did the victim lose in total due to the scam?

The victim lost a total of $1.2 million due to the scam.

What is the term used to describe the process of building a relationship with a victim before exploiting them financially?

The process is known as 'Pig butchering', where the scammer builds a relationship before exploiting the victim financially.

What is the term used to describe the scam operation run by Chinese gangs in Southeast Asia?

The term used is 'Shazu pan', which refers to the scam operation run by Chinese gangs in places like Cambodia, Myanmar, and Laos.

What are some indicators that a building might be housing a scam operation?

Indicators include a nearby or attached casino, barred windows or barbed wire, a guarded parking lot entrance, and guards at the front who won't let people in.

How do the scam workers often end up in these operations?

They are often tricked through job postings on social media platforms like Facebook or through job placement agencies, which may involve interviews before they are brought into the scam companies.

What kind of physical and psychological abuse did the victims experience at the scam centers?

Victims experienced physical abuse such as being hit with a metal rod, being tied to beds with cable ties, and being subjected to starvation and sleep deprivation. Psychologically, they were threatened and lived in constant fear.

How did the scam victims manage to get released from the scam centers?

The victims reached out to their respective embassies for assistance, but faced additional abuse when the facility bosses found out about their attempts to be released. Eventually, they were released after their families paid ransom money.

What is the global issue that needs to be addressed to combat these scam operations?

The issue requires a global solution due to the criminal syndicates constantly looking for spaces with weak, poor, or non-existent governance to exploit, which is a problem exacerbated by the digital age and increased trust in online interactions.

Outlines

00:00

🚨 Cryptocurrency Scams: The Deceptive Approach 🚨

The first paragraph introduces the speaker's personal experience with cryptocurrency scams. Two years prior, they began researching cryptocurrencies and engaged with various online platforms, including Discord, Telegram, and WhatsApp. They received an innocent-looking message from Malia Lee, a supposed Korean businesswoman from Los Angeles, initiating a two-month texting relationship. The speaker was introduced to a binary options trading platform called Genesis Bit, which initially provided high returns on investment. However, the scam was revealed when a large withdrawal request was denied, citing a need to pay a tax. The speaker lost $1.2 million, realizing the operation was a scam. The paragraph also discusses the broader issue of cryptocurrency scams, with the FBI reporting over $2.5 billion stolen in 2022, highlighting the 'Pig butchering' scam strategy used by Asian criminal groups, particularly Chinese gangs operating in countries like Cambodia, Myanmar, and Laos.

05:03

🏢 Exposing the Scam Centers: The Reality of Forced Labor 🏢

The second paragraph delves into the investigative journalism efforts that exposed the scale of scam centers, particularly in Cambodia. It describes the signs that may indicate a suspicious building, such as a nearby casino, barred windows, and guarded entrances. The paragraph outlines how workers end up in these scam centers, often through deceptive job postings on social media platforms like Facebook. Once in Cambodia, their passports are confiscated, and they are subjected to forced labor. Despite international pressure and raids, scam centers continue to operate with impunity. The paragraph also discusses the expansion of these centers to other Southeast Asian countries, including Myanmar, and the efforts of volunteers like Emmanuel Sooi, a Filipino Baptist Minister, who helps rescue and comfort victims escaping from these centers.

10:03

📘 The Scammers' Tactics and the Psychological Impact 📘

The third paragraph provides an in-depth look at the tactics used by scammers and the psychological impact on both the victims and the scammers themselves. It describes how scammers are trained to build relationships with their targets, using personas often created from photos and details sourced online. The scammers are instructed to engage in lengthy conversations with their victims before introducing the topic of investment. The paragraph also reveals the harsh treatment faced by scammers who attempt to leave, including physical abuse and ransom demands. The emotional burden of participating in scams is highlighted, with one scammer expressing guilt for deceiving people. The paragraph concludes with a call for a global solution to combat the expanding criminal syndicates that exploit weak governance and the digital age's reliance on trust in unseen individuals.

Keywords

💡Cryptocurrency

Cryptocurrency refers to digital or virtual currencies that use cryptography for security and operate independently of a central authority. In the video, it is the central theme as the speaker becomes interested in it and subsequently falls victim to a cryptocurrency scam, highlighting the risks associated with digital currencies and the scams that target unsuspecting investors.

💡Scam

A scam is a fraudulent scheme designed to deceive people, typically for personal gain or to cause damage. The video discusses how individuals are targeted through social media and online platforms for cryptocurrency scams, with the speaker losing a significant amount of money, illustrating the devastating impact of such scams on victims.

💡Genesis Bit

Genesis Bit is mentioned as a binary options trading platform in the video. It is portrayed as a fraudulent investment opportunity that the speaker was introduced to, which resulted in substantial financial loss. This keyword is significant as it represents the specific scheme used to defraud the speaker and others.

💡Return on Investment (ROI)

Return on Investment (ROI) is a financial metric used to evaluate the efficiency of an investment. In the context of the video, the speaker is initially lured into the scam by an incredible ROI on their initial investment, which is a common tactic used by scammers to entice victims into parting with their money.

💡Social Media Messaging

Social media messaging refers to the use of messaging services on social media platforms to communicate. The video highlights how scammers use these platforms, including Discord, Telegram, and WhatsApp, to contact and build relationships with potential victims before introducing them to fraudulent investment opportunities.

💡FBI

The Federal Bureau of Investigation (FBI) is a government agency responsible for investigating federal crimes in the United States. The video mentions the FBI recording over $2.5 billion stolen in 2022 due to cryptocurrency scams, indicating the scale of the problem and the involvement of law enforcement in addressing such crimes.

💡Pig Butchering

Pig Butchering is a term used to describe a specific type of scam where victims are lured, fattened with false promises, and then 'slaughtered' by disappearing with their money. The video explains this term in the context of cryptocurrency scams, emphasizing the predatory nature of the scammers.

💡Force Labor

Force labor refers to the practice of compelling people to work against their will, often under threat or use of violence. The video discusses how scammers are also victims, forced to participate in the scam operations through kidnappings and human trafficking, highlighting the complex and inhumane nature of these criminal operations.

💡Southeast Asia

Southeast Asia is a region comprising various countries in the southeastern part of Asia. The video mentions that scam centers have expanded to countries in this region, including Cambodia, Myanmar, and Laos, where law enforcement is weak, allowing for the establishment of large-scale scam operations.

💡Human Trafficking

Human trafficking involves the illegal trade of people for various purposes, including forced labor and sexual exploitation. The video reveals that many of the scammers are themselves victims of trafficking, brought into the scam operations through deception and coercion, adding a layer of complexity to the issue.

💡Global Solution

A global solution refers to a coordinated effort by multiple countries or entities to address a problem that transcends national borders. The video concludes with the need for a global solution to combat the expanding criminal syndicates behind cryptocurrency scams, emphasizing the international nature of the issue and the importance of a unified response.

Highlights

The individual started researching cryptocurrency and encountered scams through various communication platforms.

A seemingly innocent message from Malia Lee, a self-proclaimed Korean businesswoman, initiated the scam process.

Criminals used social media and dating apps to build trust and eventually introduce victims to cryptocurrency scams.

The FBI recorded over $2.5 billion stolen in 2022 due to cryptocurrency scams, marking a 183% increase from the previous year.

Scammers targeted victims through social media messaging apps, proposing lucrative investment opportunities.

The scam involved a platform called Genesis Bit, a binary options trading platform that offered an incredible return on investment.

The victim withdrew money to test the process and then invested up to $8 million, including their entire savings.

The scam was revealed when a withdrawal request of $12 million was rejected, prompting the realization of a fraudulent scheme.

The victim lost $1.2 million on December 3rd, leading to a state of panic and suicidal thoughts.

Chinese criminal gangs are behind these scams, exploiting weak law enforcement in countries like Cambodia, Myanmar, and Laos.

The term 'Pig butchering' is used to describe the scam, where victims are nurtured before being defrauded of their money.

Scammers are increasingly using forced labor, kidnapping, and trafficking to staff their scam centers.

There are multiple massive scam compounds across Southeast Asia where victims work under threat of torture and violence.

Indicators of a scam compound include proximity to a casino, barred windows, barbed wire, and guarded entrances.

Victims are often lured through job postings on platforms like Facebook and then trafficked into scam operations.

Cambodia faced international pressure, leading to raids on scam compounds, but these operations continue to thrive.

After crackdowns in Cambodia, scam centers have expanded to other Southeast Asian countries, including Myanmar.

A Filipino Baptist Minister helps rescue victims from scam centers, providing support and safety.

Victims are subjected to physical and psychological abuse, forced to scam others, and extorted for ransom money.

The emotional burden of participating in scams adds to the trauma experienced by the victims.

Law enforcement efforts are outpaced by the expansion of criminal syndicates, necessitating a global solution to the problem.

The digital age and increased trust in online interactions have made scams more prevalent and harder to detect.

Transcripts

right two years ago I started becoming

interested in cryptocurrency and I

started doing some research on the

internet Discord was used and all kinds

of platforms like telegram WhatsApp and

people would communicate with each other

then I got this really innocent looking

what

message from Malia Lee from Los Angeles

and she said she was a Korean

businesswoman I got a DM on Instagram

and it was from a fairly goodlooking uh

Chinese man we were chatted a little bit

some minutes later he was like do you

mind if I get your phone number and then

that just start of started series of

like non-stop texting for a full two

months

her name was Jessica she was very

friendly she was very compassionate I

was able to share what I'm going through

November 24th when she finally

introduced me to

cryptocurrency more and more Americans

are falling victim to cryptocurrency

scams with the FBI recording more than

$2.5 billion stolen in

2022 a 183% increase on

2021 fueling this rice is one scam from

Asia where criminal groups Target

victims through social media messaging

apps and online dating building personal

relationships before proposing lucrative

investment opportunities I was

introduced to this platform called

Genesis bit which was a binary options

trading platform the first trading

session I made about $1,200 with a

portfolio of about 4,000 which was

incredible return on investment for

anything from time to time I did some

withdrawals because I wanted to see if

the whole process worked then I put in

more money um I think up to about $8

million first 10,000 20,000 all the way

up to close to 500,000 already my entire

savings ended up going into this

account only when it's too late is the

scam revealed I put in a request to

withdraw like $12

million um and this was rejected I was

told by the customer service that I

needed to pay a tax it didn't make any

sense to me I'm like okay something is

clearly wrong so then I I woke up from

this dream December 3rd is when I lost

$1.2

million I tried to call her up I

panick she wasn't picking up

I was very

suicidal I mean that 1.2 million is 30

years of Our

Lives I knew right then and there that

this is a

[Music]

scam these scams often start with a

harmless text seemingly received by

accident but behind the innocent looking

profiles is a multi-billion dollar

criminal operation run by Chinese gangs

in places like Cambodia Myanmar and Lao

they've exploited weak law enforcement

in these countries to set up industrial

scale scam centers where thousands of

workers engage in what's known as shazu

pan or Pig butchering Jason Tower is a

transnational crime and security expert

for the United States Institute of Peace

the reason it's called Pig butchering is

once you've got the victim putting money

into the platform it's kind of like a

pig and once you sort of see the pig is

uh reached its ideal wait you go ahead

and Slaughter it and that's the moment

where the perpetrator will basically

disappear with all of the funds who are

these scammers where are they coming

from the scammers um themselves

initially um were from China but the

Crackdown in China has become quite

severe This is highly labor intensive

because it requires people going onto

social media to identify victims so the

scammers actually started using Force

labor they started kidnapping they

started um you know buying and selling

labor so uh increasingly the people who

are the ones that are the perpetrators

are also victims

themselves there are now dozens of

massive scam compounds across southeast

Asia where tens of thousands of

trafficking victims from the Philippines

Indonesia Vietnam and elsewhere work

under constant threat of torture and

violence

[Music]

the shocking scale of these scam centers

was first exposed here in sanville

Cambodia by a group of investigative

journalists at the Cambodia based news

agency voice of democracy Danielle Kon

Olen contributed to that

reporting are there any signs that will

tell me if this building is suspicious I

mean the compounds themselves are

somewhat inoc is but there's a lot of

indicators uh number one is a casino

close by or attached to it if you see

bars on the window or barbed wire

parking lot entrance with guards at the

front who won't let you in these are

usually some good signs that this is a

scam company so how do the workers end

up here sometimes it's a job post on

Facebook or a job placement agency

recruiting in Cambodia and sometimes

they even have interviews but once they

agree they'll you know like very quickly

be brought by some means into Cambodia

and then put into one of these companies

and their passport would be taken at the

door and that's when the nightmare

starts yep Cambodia has faced

International pressure to act late last

year authorities raided compounds across

the country finding thousands of

foreigners

inside despite this scam centers

continue to operate with impunity in

Cambodia and

[Music]

Beyond we're in Mad a town in northern

Thailand right by the border of Myanmar

after the Crackdown in Cambodia late

last year the scam centers have expanded

to other countries in Southeast Asia

including Myanmar here in Mad is where

many of the victims when they're rescued

cross back into

Thailand Emmanuel sooi is a Filipino

Baptist Minister who volunteers to help

foreign Nationals freed from scam

centers across the border in

Myanmar for them to get out from there

it's just like getting out of slavery or

or uh jail they are still afraid and so

uh what we are doing is to make them

calm telling them that uh you're going

to be safe here uh you you're going to

be okay in spite of what they have been

through have there been any risks for

you doing this work

it is uh risky but uh uh we have to just

uh doing it being being

careful while we were filming with

Emmanuel he received a call confirming

that a group of trafficking victims were

being released from

mianmar yeah they are on the way now

okay let's go

we've been told that six Filipinos were

released from a scam Center in Myanmar

they're currently on their way to the

river to try and cross it to get here to

Thailand that's where the Filipinos are

being

healed like they are going to pass

through the town of Mei so they go to a

quieter part of the river yes but the

moment they cross the river and get to

mot they're safe yes yes until then

Anything Can Happen

yes upon leaving the compound the

victims were driven to the border and

made to covertly cross the river which

is heavily guarded by military personnel

from both sides once they made it to the

tie side a driver picked them up and

dropped them off near a hotel in the

city center where we met

them m

Nam

[Music]

later that evening the group explained

how they were tricked into working at

the scam

compound job

advertisement Facebook Facebook they're

looking for um encoder um the basic

salary will be 40,000 to 60,000 pesos

with

commission was there a job interview or

nothing yes you just need to send a

video of introducing

yourself and then they say

congratulations you've been accepted

when we came here they give you a

contract to sign were there guide books

on how to scam people yes get to know

each other as the Hobbies yeah what day

do you then ask for money we are not

allowed to uh invise him to investment

we need the client to um engage if you

don't have more than 100 conversations

good conversations with your client

they'll go you need to run under the

heat of the

sun after 6 months the group reached out

to Philippine Embassy officials asking

for assistance to be released when the

bosses at the facility found out they

were detained in a room and abused and

told they could not leave until their

families came up with Ransom money for

each of them you need to pay a 7,000

usdd or they're going to hit you and

that's what happened to us yeah lck in

the dorm like no food no food 5 days no

sleep they use cable tires to to tie us

in the bank

beds every night the the boss came do

you have money already do you have money

already and if you cannot um answer him

they going to hit you more than 10

times they hit us a metal a metal a

solid metal a rod

[Music]

ano Nila y

achievement Big

Boss when I saw the Chinese guys

laughing and they are hting we all just

cry the group not only has to carry

these physical and psychological scars

for from their forced labor but the

emotional burden from the scams they

participated in can you show us the

Persona that you were

imitating this is my model by model do

you mean you just took her photos online

yeah why did you choose her because

she's very rich she have a lot of

teacher from Los Angeles she's always in

the business R who were you targeting

where were they from Canada Australia us

so Western men how old like we have a

age of 40 to 40 and up 40 and above did

you feel guilty using this person to

fool all these men I feel so guilty when

I'm

[Music]

Charing whatever happen don't

how much worse can this get the criminal

syndicates and the expansion of this

activity is Way Beyond the pace of the

response by law enforcement the

syndicates themselves are constantly

looking for spaces around the globe

where they can exploit either weak poor

or non-existent governance and that's

why this really is a problem that

requires a global solution I think we

live in in a digital age and especially

after the pandemic we've all gotten

really used to trusting people that

we've never met in person maybe they are

a victim themselves as much as I am we

know that there's a higher boss out

there and these are just pawns working

to scan