Binance’s Financial Intelligence Unit (FIU) and its Indonesian subsidiary Tokocrypto worked with Indonesia’s Criminal Investigation Agency Bareskrim, to crack down on crypto fraud in the region.
A recent investigation has led to the arrest of multiple suspects and the seizure of approximately $200,000 in fraudulent funds.
Bareskrim is the criminal investigation agency of Indonesia’s national police. It is the central executive agency responsible for investigating major crimes, including financial fraud, cybercrime, and organized crime.
Earlier this month, Tokocrypto, secured a Physical Crypto Asset Trader (PFAK) license from Indonesia’s commodity regulator, Bappebti.
Bareskrim Identifies Pig Butchering Scams
The investigation began when Bareskrim identified a suspected crypto trading website as a front for fraudulent operations, part of a broader scam known as a “pig butchering scam.”
These scams typically involve long-term deception where fraudsters manipulate victims into making substantial investments under the guise of legitimate trading, only to steal their funds.
Chainalysis released a mid-year update on crypto crime in August, revealing a big rise in pig butchering scams within the cryptocurrency market in 2024.
Reports indicated that the fraudulent website was facilitating illegal transactions, this in turn prompted Bareskrim to act. During the investigation, law enforcement arrested several individuals responsible for managing the accounts used to launder the stolen funds.
The Indonesian authorities seized over 50 mobile phones, numerous local bank cards, and banking apps found on the suspects’ devices. Bareskrim investigators found wallet addresses likely controlled by the suspects, with supporting evidence found through their use of Telegram.
Despite their refusal to cooperate, forensic analysis allowed investigators to uncover key evidence, including crypto wallet addresses and communication records, particularly from the suspects’ Telegram chats.
Collaboration with Binance and Tokocrypto
Bareskrim contacted Tokocrypto, Indonesia’s prominent crypto exchange for assistance. Due to the complexity of the case, Tokocrypto referred the investigation to Binance’s FIU, which specializes in analyzing and tracking illicit crypto activity.
“Because we keep an open communication channel for global law enforcement agencies, we were able to connect with Bareskrim, leading to valuable actions,” said Nils Andersen Röed, Head of Binance FIU.
By working together, we can leverage our combined expertise to effectively track and seize illicit funds, ensuring that the cryptocurrency ecosystem remains secure and trustworthy,” said Röed.
