Crypto Scams Surge: Pig Butchering Evolves, AI-Driven Schemes Boom

Crypto scams surged in 2024, with a 40% increase in revenue from "pig butchering" scams, according to a report by blockchain analytics firm Chainalysis. These scams, which involve building trust with victims before convincing them to make fraudulent investments, have adapted their tactics to include fake work-from-home employment offers.

The number of deposits into pig butchering scam wallets grew by 210%, but the average deposit amount fell by 55%. This shift suggests scammers are targeting more victims with smaller amounts rather than focusing on fewer high-value targets. Traditionally, these operations have been based in Southeast Asia, but they have recently spread to other regions.

The rise in scam activity coincides with the emergence of Huione Guarantee as a major platform for crypto-based illegal schemes. The peer-to-peer marketplace, affiliated with Cambodian conglomerate Huione Group, has processed $70 billion worth of crypto transactions since 2021. The platform offers access to targeted data lists, web hosting services, social media accounts, and AI software, making it a "one-stop-shop" for scammers.

In 2024, scam vendors using the platform collected at least $375.9 million in cryptocurrency. The platform's AI service vendors saw a massive 1900% increase in revenue, pointing to growing use of artificial intelligence in scam operations. These AI tools help scammers create realistic fake images and videos to deceive victims.

Data vendors on Huione also trade in stolen personal information, which scammers use to identify and target individuals who might be more susceptible to their schemes. The platform's reach extends beyond typical scam operations, with North Korea's Lazarus hacking group reportedly sending over $150,000 in cryptocurrency to Huione's payment app.

Besides pig butchering, other types of crypto scams showed growth in 2024. Crypto drainers saw a 170% increase in revenue and a 75% rise in deposits. Address poisoning scams, which target users with large wallet balances, grew by 15,000% following a major attack in May.

The total impact of crypto scams in 2024 reached at least $9.9 billion,