Binance Ordered to Unmask Account Holder in €186,000 Crypto ‘Pig Butchering’ Scam

In a significant ruling, a court in The Hague has ordered the cryptocurrency exchange Binance to disclose personal information of an account holder implicated in a major dating app scam. This directive follows a case involving a Dutch woman who fell victim to a “pig butchering” scam, leading to a loss of nearly €186,000 (approximately $200,000 USD) in what she believed to be a legitimate cryptocurrency investment.

The case began when the woman, who met her scammer on a dating app, was gradually persuaded over time to invest substantial sums of money in a supposed cryptocurrency opportunity. Over six separate transactions, she transferred a total of €186,000, believing it would yield considerable returns. Only after realising she had been deceived did she report the crime to Dutch authorities and enlist the help of a private investigation firm to trace her funds.

Investigators successfully tracked a portion of the stolen funds to an account on Binance, one of the world‘s largest cryptocurrency exchanges. Although Binance subsequently froze the account, the exchange refused to release any information about the account holder, citing its privacy policy and the need for a court order. In response, the victim’s legal team sought judicial intervention to uncover the scammer‘s identity, arguing that justice in this case outweighed privacy considerations. The Dutch court ruled in favour of the victim, mandating that Binance disclose the scammer’s full name and address within 14 days. Furthermore, the court extended the freeze on the account for four weeks, allowing the victim time to consider additional legal actions.

This ruling highlights a growing legal expectation for cryptocurrency platforms to cooperate in fraud investigations, especially as regulatory scrutiny increases across global jurisdictions. In recent months, both the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have intensified their efforts to combat crypto-related fraud schemes, including so-called pig butchering scams.

Pig butchering scams involve fraudsters cultivating relationships with victims, often via dating apps or social media. The scammer initially encourages small investments with promises of high returns, gradually building trust before persuading the victim to invest large amounts. Once significant funds are secured, the scammer vanishes, leaving the victim with nothing.

This case underscores the ongoing tension between privacy protection and regulatory compliance in the cryptocurrency industry. As regulatory bodies increase oversight, exchanges like Binance face mounting pressure to work alongside authorities to prevent and address fraudulent activities. Compliance with such legal directives may strengthen trust in crypto platforms but also raises complex privacy issues.

Ultimately, this Dutch court decision serves as a reminder to crypto platforms about their role in combating fraud and highlights the increasing regulatory obligations they face.