$7 million in scam funds cross-chain transfer, mixing services become the new escape tool

According to the latest news, a wallet transferred $7 million across chains from multiple wallets on the TRON network to Ethereum. Fund tracing indicates that these funds are suspected to originate from a cryptocurrency “pig butchering” investment scam. Of this amount, $3.1 million has already been mixed through Tornado Cash. This incident once again exposes how scammers utilize cross-chain bridges and privacy mixing services to evade fund tracking.

Event Overview

Key information about the fund flow

• Transfer amount: approximately $7 million
• Source chain: TRON (scam fund accumulation point)
• Destination chain: Ethereum (transfer target)
• Monitoring agency: Specter
• Mixing portion: $3.1 million entered Tornado Cash

What is a “Pig Butchering” scam

A “pig butchering” scam is a typical crypto investment fraud pattern. Scammers build trust with victims through social media, dating apps, and other channels, then induce victims to invest funds into fake investment platforms or projects. This type of scam is characterized by a long cycle, large amounts, and deep disguise, often leading victims to continue investing under the illusion of profit until scammers abscond with all the funds.

In-Depth Analysis

Purpose of cross-chain transfer

Moving from TRON to Ethereum is not an arbitrary choice. Although TRON offers low transaction costs, Ethereum provides higher liquidity and exchange support, making it easier for scammers to later cash out or mix funds on Ethereum. Cross-chain transfers themselves are a means to evade tracking—funds jumping between different chains increase the difficulty of tracing.

Role of mixing services

The detail that $3.1 million entered Tornado Cash is particularly significant. Tornado Cash is a privacy mixing protocol that breaks the transparency of blockchain transactions. Scammers use it to obfuscate part of their funds, aiming to sever the on-chain link between the money and the original scam activity. After mixing, the funds become “clean” tokens that can enter exchanges or other DeFi protocols without being recognized as scam-related.

Why not all funds are mixed

It is noteworthy that only $3.1 million out of the $7 million entered the mixing service. This may reflect several scenarios: scammers might plan to use other parts for different operations, face capacity limits of the mixing service, or have yet to decide how to handle certain funds. This also indicates that there is still an opportunity for tracking and freezing.

Industry Reflection

This incident highlights ongoing challenges in the crypto industry:

• Scaling of scams: A single scam involving $7 million is substantial, indicating that “pig butchering” scams still have a market in crypto
• Misuse of technology: Cross-chain bridges and mixing services, originally designed for privacy, are exploited by scammers to evade tracking
• Value of on-chain tracking: Tools like Specter can detect such abnormal fund flows, which is crucial for prevention
• Lack of user awareness: Many users are still being deceived by “pig butchering” schemes, underscoring the need for better education and risk alerts

Summary

This $7 million cross-chain scam transfer demonstrates three characteristics of current crypto scams: large scale, diverse methods, and rapid evasion. From TRON to Ethereum, then to Tornado Cash for mixing, scammers are fully exploiting blockchain features to avoid detection. For users, this serves as a clear warning—always verify project authenticity before investing and be cautious of social media investment prompts. For the industry, it emphasizes the importance of on-chain monitoring, exchange compliance, and preventive measures.