The truth behind crypto fraud: a silent billion-dollar industry without borders
Date: | Week 43 | Reading time: 7 minutes | Updated: Author: Simcha Schrijver
In short
The crypto fraud industry is an organised, cross-border sector that brings in billions every year. Criminal networks spend months building trust through dating apps, social media and chat messages before they ask for an investment. Whether your own situation falls into this category is not always clear in advance; an independent investigation gives clarity.
Paucitas is an independent expert firm in the Netherlands that investigates investment fraud and crypto fraud, in hundreds of cases a year. Every day we see how professionally these networks operate, and how often people wrongly feel ashamed.
Get in touch with Paucitas or ring +31 20 244 5774, even if you are still unsure. A free intake is without obligation and you will never be judged.
In a nutshell
People who fall victim are rarely naive: the methods are sophisticated and professional. Paucitas maps out what happened to your money, discreetly and without judgement.
In October 2025 the US Department of Justice announced that it was seeking to forfeit approximately 127,271 bitcoin, worth around 15 billion dollars at the time. The department calls it the largest forfeiture action in its history.
Behind that figure is a human story that repeats itself every day, in the UK too. This blog explains what the case shows about the crypto fraud industry, and what it means for you if you have doubts about your own situation.
What does the 15 billion dollar case reveal about the crypto fraud industry?
According to the US Department of Justice, Chen Zhi, founder and chairman of Prince Holding Group, has been charged with directing so-called scam compounds in Cambodia. People there were allegedly held against their will and forced to carry out crypto investment fraud against victims worldwide. These are charges; a court has yet to rule.
The case shows two things. First, the scale: this is not a lone fraudster but an industry with offices, scripts, roles and targets. Second, the human suffering on both sides: of the people who are scammed and of the people who are forced to scam.
Why we would rather not use the term "pig butchering"
Internationally this type of scam is called pig butchering. Paucitas finds the term misplaced and hurtful. It suggests victims were naive, when that is rarely the case. These are people who were misled step by step by professionals who know exactly how to build trust.
The build-up often takes months. Fraudsters pose as investors, mentors or partners and use real company names and convincing websites. How those specific stages work is explained in pig butchering explained.
Can crypto fraud happen to anyone?
Yes. We see it with business owners and directors, teachers, students, farmers and hard-working parents. The networks play on human nature: trust, hope and ambition. And because genuine price rises do happen in crypto, high returns do not necessarily sound implausible.
Then there is the embarrassment. Many people wait a long time before seeking help. That silence plays into the networks’ hands. There is nothing to be ashamed of. In doubt? Get in touch or ring +31 20 244 5774, 24/7. We never judge.
An example from practice
A retired teacher met a friendly woman through a language app. After months of conversations she showed him a trading platform on which they would invest "together". The balance grew, until a withdrawal suddenly required extra fees.
His daughter rang Paucitas. We mapped the route of his deposits and saw that it matched a pattern we come across more often. With our report he reported it to the police. More important to him: he understood what had happened, and that he was not to blame.
Paucitas takes privacy very seriously and never shares clients' personal details. This is a composite example: names, amounts and details have been changed. The situation is one we see in practice.
Where is the line between legitimate and fraudulent?
Not every suspicious situation is fraud. Sometimes a legitimate platform temporarily holds funds for verification or KYC checks. That grey area is exactly where people get confused, and fraudsters exploit it by asking for official-sounding "verification fees".
In large networks, money is spread over many wallets and networks, for example through a peel chain. That makes the trail complex, but not invisible. A blockchain forgets nothing. Paucitas follows that trail itself, without tracing tools, and records where the money went. Sometimes it leads to an exchange or a known pattern, sometimes a platform turns out to be legitimate after all. Both outcomes give clarity.
What can Paucitas do for you?
Paucitas investigates both the technical and the human side: how the platform is set up and the transactions, and also all conversations, documents, emails and other communication. That gives a complete picture, with a timeline and where all the money went, step by step. You receive a report that anyone can follow and understand step by step. More on our approach in crypto fraud investigation.
The report shows whether money is still available, or where it went, and what the next steps are. If it is a scam, reporting it to Report Fraud (or to Police Scotland in Scotland) is one of those steps, and the Paucitas report is then a strong attachment that sets everything out fully and clearly. Be alert to firms that approach you after a loss and promise to recover your money for an upfront fee: the FCA warns that this is often a second scam.
- Costs: every investigation is tailored. You receive a bespoke quote in advance, which we go through together, so there are no surprises.
- Turnaround: from the same day to around two weeks.
- Contact: you can ring at any time, 24/7. We answer the form within 1 to 3 hours, and email within 24 hours, usually the same day.
Do you suspect you have been scammed, or would you like to know whether a platform can be trusted? Get in touch for a no-obligation introduction, or ring +31 20 244 5774. Discreet, factual and without judgement.
Sources: U.S. Department of Justice, Prince Group (2025); Europol, online fraud schemes; Report Fraud; Police Scotland, scams and frauds; FCA, recovery room scams.
Do you have questions about this blog?
Feel free to get in touch with Paucitas. Paucitas can be reached by phone 24/7, including evenings and weekends. Through the contact form we usually reply within 1 to 3 hours, and we answer e-mail within 24 hours.
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Frequently asked questions about the crypto fraud industry
How big is the crypto fraud industry?
Paucitas sees a cross-border sector causing billions in losses. The US case around the Prince Group, involving approximately 127,271 bitcoin, shows how organised and extensive these networks are.
Why does so much of the damage stay hidden?
Paucitas sees that many victims do not report it, out of embarrassment or distrust. As a result, official figures are structurally too low. Paucitas never judges and works discreetly.
Am I naive if I fell for this?
Paucitas does not think so. These networks work professionally, with scripts and roles, and build trust over months. It happens to people from every walk of life.
Is an investigation worthwhile if my money is probably gone?
Paucitas finds that it is and records where the money went and whether there are leads, such as an exchange. That picture is useful for your police report or a next step with your solicitor.
What does a crypto fraud investigation cost?
Paucitas tailors every investigation. You receive a bespoke quote in advance, which we go through together, with no surprises. The intake is free.
From Amsterdam, for the whole of the UK
Everything can be done fully online. Prefer to meet in person? You are very welcome at our office in Amsterdam, by appointment.
Paucitas is an independent expert firm based in the Netherlands that, for clients across the UK, investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.