Binance and Tokocrypto Join Forces with Indonesian Authorities to Combat Crypto Fraud

Binance and Tokocrypto Join Forces with Indonesian Authorities to Combat Crypto Fraud

Binance's Financial Intelligence Unit (FIU) and its Indonesian subsidiary, Tokocrypto, are collaborating with Indonesia’s Criminal Investigation Agency, Bareskrim, to address rising incidents of cryptocurrency fraud in the country. Their joint efforts have led to the arrest of several suspects and the recovery of approximately $200,000 in fraudulent funds.

Bareskrim, the national police’s criminal investigation agency, is responsible for tackling serious crimes, including financial fraud, cybercrime, and organized crime. Earlier this month, Tokocrypto obtained a Physical Crypto Asset Trader (PFAK) license from Indonesia's commodity regulator, Bappebti.

The investigation commenced after Bareskrim identified a suspicious crypto trading website linked to a fraudulent scheme known as a "pig butchering scam." This type of scam involves long-term deception, where fraudsters entice victims into making significant investments under the pretense of legitimate trading, only to steal their money. A mid-year report from Chainalysis revealed a notable increase in such scams within the cryptocurrency space in 2024.

The fraudulent website was discovered to be facilitating illegal transactions, prompting Bareskrim to launch an investigation. During this operation, several individuals associated with laundering the stolen funds were apprehended. Authorities confiscated over 50 mobile devices, various local bank cards, and banking applications found on the suspects’ devices. Investigators also uncovered wallet addresses potentially linked to the suspects, supported by evidence obtained through their communication on Telegram.

Despite the suspects' attempts to evade cooperation, forensic analysis yielded crucial evidence, including crypto wallet addresses and chat records from Telegram.

Bareskrim reached out to Tokocrypto for assistance in this complex case. Tokocrypto subsequently referred the matter to Binance’s FIU, which specializes in tracking and analyzing illicit crypto activities.

"Maintaining open communication with global law enforcement agencies has enabled us to collaborate effectively with Bareskrim, resulting in significant actions against fraud," said Nils Andersen Röed, Head of Binance FIU. “By combining our expertise, we can efficiently trace and recover illicit funds, ensuring a secure and trustworthy cryptocurrency ecosystem.”