Crypto Pig Butcher Scams Exploit UK Companies’ Home: Report

According to a survey by the Bureau of Investigative Journalism and The Observer, more than 168 shell companies in the UK are suspected of operating fraudulent crypto or currency exchange schemes, around half of which are potentially linked to scams at the pig butcher.

In fact, these organized crime groups were find to use the UK as a “virtual base” for their operations while exploiting lax regulations to carry out industry-wide fraud, according to the investigation.

UK pig butcher scams

Upon further analysis, the two media companies found that many of these companies are linked by domain registrations. Interestingly, a large majority of company directors are Chinese residents, however details of the beneficial owners are limited due to deficiencies in the Companies House registration system.

Despite rampant fraudulent activity and concerns about potential money laundering via the UK, the country has mostly turned a blind eye. A similar sentiment was shared by Margaret Hodge, MP and chair of the APPG on Anti-Corruption and Responsible Taxation, who said traffickers, drug dealers, fraudsters and scammers are exploiting lax UK laws and opaque on companies for years.

The British politician admitted that Companies House had failed to fight back when it was the first line of defense and stressed the need to review the information provided to him and punish those who do. lie. She added,

“And it needs to be properly funded to fulfill its role. At present it costs £12 to set up a company. Raising the fee to £100 would provide enough resources for our law enforcement without increasing the cost to the taxpayer. Anything less than that and the criminals and corrupt of the world will see that they can continue to manipulate and exploit us.

Loopholes

Hog slaughter scams first originated in China. Also known by its Chinese name – shāzhūpán – because attackers “fat” or “heal” their victims before taking everything they have. While these scams are more pronounced in the cryptocurrency industry, they also involve other types of financial transactions.

One of the main reasons hog slaughter scams have managed to take over the country is due to flaws in the UK company registration system that have been known for years. Anyone can register a business online for as little as £12 without having to provide proof of identity.

Respondents in the joint survey had reported their cases to police forces in the UK or their home country, the Financial Conduct Authority or cryptocurrency exchanges they used to trade transfers. However, none managed to recover the funds.