"Crypto Scams Surge: $9.9B in 2024, Pig Butchering Leads the Way"

Crypto Scams Surge to $9.9 Billion in 2024, Driven by "Pig Butchering" Schemes

According to a recent report by blockchain analytics firm Chainalysis, crypto scams generated at least $9.9 billion in illicit revenue in 2024. The most significant contributor to this surge was "pig butchering" scams, which combine investment fraud with romance scams. Perpetrators build trust with victims before convincing them to invest in fake crypto platforms.

Chainalysis warns that the estimated $9.9 billion in scam revenue for 2024 is likely conservative. Instead, the final figures could potentially exceed $12 billion. The report highlights a near 40% increase in pig butchering incidences year over year, accounting for 33.2% of total crypto scam revenue.

Many of these operations originate from Southeast Asia. The report also highlights scammers' increasing sophistication, citing illicit services such as Huione Guarantee, a peer-to-peer (P2P) platform that facilitates fraud. Specifically, it is a Telegram-based marketplace serving Southeast Asian fraudsters, including those responsible for so-called pig butchering scams.

This platform provides scammers with money laundering tools, stolen personal data, and social media management services. Since 2021, Huione Guarantee has reportedly processed over $70 billion in crypto transactions, solidifying its role in the fraud ecosystem.

The research also revealed Huione Guarantee's recent launches, USDH stablecoin and blockchain project Xone. These launches raised concerns about new avenues for fraudsters to obscure their transactions.

The report bolsters a recent incident in which Tether froze 29.62 million USDT linked to Cambodian criminal activities involving the Huione Group. Recently, Elliptic also exposed Huione Guarantee as a multi-billion dollar marketplace for online fraudsters.

Chainalysis also highlights the role of generative AI in enhancing scam tactics further, enabling fraudsters to impersonate victims. Specifically, it helps them bypass identity verification and create highly convincing fake investment platforms.

In addition to pig butchering scams and generative AI, other crypto fraud methods saw substantial growth in 2024: