Coinbase, Kraken, Others Form Coalition to Tackle 'Pig Butchering' Scams

• The "Tech Against Scams" coalition will serve as a convening body through which its members collaborate to take action against fraudsters.

• "Pig butchering" involves scammers contacting their victims through dating apps or social media, gaining their trust before pitching a money-making opportunity involving cryptocurrency.

Cryptocurrency exchanges Coinbase, Kraken and other crypto firms have joined an alliance aimed at responding to and preventing online fraud and scams.

The "Tech Against Scams" coalition will serve as a convening body through which its members collaborate to take action against the methods scammers use and protect customers, according to an announcement on Wednesday.

"This work will include sharing best practices, threat intelligence, and other tips and information to help keep users safe and protected before they become victim to an online fraud scheme such as romance scams or crypto scams such as 'pig butchering'," the coalition said.

"Pig butchering" involves scammers contacting their victims through dating apps or social media, gaining their trust before pitching a money-making opportunity involving cryptocurrency.

Losses from crypto investment scams totaled $3.94 billion in the U.S. alone in 2023, compared to $2.57 billion the year before, according to a report by the Federal Bureau of Investigation (FBI).

The coalition also includes prominent crypto companies Ripple and Gemini, as well as Meta (META) and Match Group (MTCH), the parent company of dating apps Tinder and Hinge.

Read More: Canada’s ‘Crypto King’ and Associate Arrested, Charged With Fraud in Alleged $30M Ponzi Scheme