Main Takeaways

• Indonesia’s Criminal Investigation Agency (Bareskrim), in collaboration with Binance and Tokocrypto, successfully disrupted a major scam operation, identifying multiple suspects and seizing $200,000 in ill-gotten funds.

• The investigation into a suspected trading fraud case revealed a pig butchering scam network, with Bareskrim uncovering key wallet addresses and arresting individuals involved in managing the stolen funds.

• The successful operation highlights the importance of public-private partnerships in combating financial crimes, with Binance’s Financial Intelligence Unit playing a crucial role in providing in-depth analysis and support.

Indonesia’s Criminal Investigation Agency (Bareskrim), the central executive agency of the country’s Police Force, has successfully disrupted a major scam operation in collaboration with Binance and Tokocrypto. Thanks to the support of Binance’s Financial Intelligence Unit, the investigation resulted in multiple suspects being identified and some $200.000 of ill-gotten funds being seized.

Uncovering a Fraud Operation

In November 2023, Bareskrim initiated an investigation into a suspected trading fraud case involving a crypto trading website. The investigation later confirmed that the website was part of a pig butchering scam.

Reports indicated that the website was potentially a front for fraudulent operations. During the investigation, multiple individuals involved in managing the accounts that received the stolen funds were arrested. Authorities discovered approximately 50 mobile phones and numerous local bank cards, along with banking apps on the suspects’ phones and tablets. The suspects refused to cooperate when questioned about the cryptocurrency wallets they controlled.

Through forensic analysis, Bareskrim investigators uncovered wallet addresses likely controlled by the suspects, with supporting evidence found in their communication records, particularly on Telegram. Screenshots of their chats revealed several key wallet addresses, further linking the suspects to the fraud.

Recognizing the complexity of the case and the cross-border nature of cryptocurrency transactions, Bareskrim initially sought assistance through Tokocrypto, which later referred the case to Binance’s Financial Intelligence Unit (FIU) for further analysis. This collaboration relied on the expertise of various teams, including Binance’s investigators, who played a crucial role in the operation.

Full Cycle of Support

Binance’s FIU and its partners provided in-depth analysis and support, extending from the initial investigation to data requests, the freezing of assets, and ultimately, the successful seizure of the funds in suspects’ accounts. The seized funds, totaling $200,000, were handed over to law enforcement. One account holder was arrested in connection with the case.

According to Nils Andersen Röed, Head of Binance FIU, this case highlights the importance of collaboration between public and private sectors in combating financial crimes. Nils said, “Because we keep an open communication channel for global law enforcement agencies, we were able to connect with Bareskrim, leading to valuable actions. 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.”

Ferry Maulana, an investigator at Bareskrim, noted, “The success of this operation demonstrates our commitment to fighting financial fraud and protecting the public. The partnership with Binance FIU and Tokocrypto has been instrumental in unraveling the complexities of this case and bringing the perpetrators to justice. We will continue to pursue all leads to ensure that those involved are held accountable.” The success of the case is attributed to the efforts of the Indonesian National Police team, including Mr. Samsu Arifin, Mr. Robert De Deo, Mr. Sentot Kunto, Mr. Ferry Maulana, Mr. Putra Daniel, and Mr. Togarma.

More to Come

The case is ongoing as authorities follow up on additional leads uncovered during the investigation. This operation underscores the effectiveness of public-private cooperation in tackling financial fraud, particularly in the realm of cryptocurrency scams.

Azizah Mutia Karim, Tokocrypto’s VP of Legal, Compliance & Government Relations, expressed the platform’s commitment to strengthening these collaborative efforts in the fight against financial fraud, especially in the cryptocurrency space. She stated, “At Tokocrypto, we are fully committed to working alongside law enforcement agencies and industry partners like Binance to ensure the safety and trustworthiness of the crypto assets ecosystem. This case is a testament to the power of collaboration in uncovering fraudulent activities and protecting the public. We will continue to support such initiatives and provide any necessary assistance to help combat crypto-related crimes.”

Binance is committed to collaborating with law enforcement agencies globally to enhance security and protect users from fraud. In 2023, Binance’s FIU processed 58,000 law enforcement requests, up from 50,000 in 2022, demonstrating our capacity to handle high volumes of investigations. Through the Government Law Enforcement Request System, we served over 12,000 registered law enforcement officers worldwide in 2023 alone.