"Crypto's $5.5B 'Pig Butchering' Scam Surge: 200K Victims in 2024"
1min read Cryptocurrency investors have been grappling with a surge in "pig butchering" scams, which have resulted in losses totaling $5.5 billion across 200,000 identified cases in 2024, according to a report from onchain security firm Cyvers. This type of phishing scheme involves prolonged and complex manipulation tactics to trick investors into willingly sending their assets to fraudulent crypto addresses.
Pig butchering schemes on the Ethereum network have been particularly devastating, with over $5.5 billion in losses across 200,000 identified cases in 2024. The report identified three of the five largest centralized exchanges (CEXs), a crypto-friendly bank, and an institutional trading platform among the top 10 most affected platforms.
The industry is still recovering from 2024, when crypto hackers stole over $2.3 billion worth of digital assets across 165 incidents, a 40% increase over 2023. However, pig butchering schemes are now considered the biggest threat, even compared to crypto hacks. Michael Pearl, vice president of GTM strategy at Cyvers, noted that the grooming element is what sets pig butchering schemes apart from other investment scams.
The average grooming period for victims lasts between one and two weeks in 35% of cases, while 10% of scams involve grooming periods of up to three months. Alarmingly, 75% of victims lost over half of their net worth to pig butchering scams, with males aged 30 to 49 being the most affected. The proliferation of generative artificial intelligence and AI-based social media chatbots is also helping scammers scale their attacks.
The impact of pig butchering schemes extends beyond just retail investors, with crypto platforms, especially centralized exchanges, hemorrhaging millions and grappling with reputational crises, banking relationships, and regulatory scrutiny. Efforts to combat this phenomenon are underway, ranging from industry-led initiatives to government-driven regulatory actions and enforcement efforts.
December 2024 was the biggest month for pig butchering schemes, costing the industry over $468 million and overtaking November's $424 million. As the crypto industry continues to grow and evolve, investors must remain vigilant and aware 
