Quick Facts:
- ‘Pig butchering’ crypto scams saw a 40% rise in funds lost in 2024 compared to 2023.
- Scammers are shifting from traditional Ponzi schemes to more personalized ‘pig butchering’ methods.
- Notable scams have been traced to organized groups operating internationally.
Funds lost to ‘pig butchering’ crypto scams increased by 40% in 2024 compared to the previous year, according to a recent report by blockchain analytics firm Chainalysis. These scams, which combine elements of romance and investment fraud, have become increasingly sophisticated, leading to significant financial losses among unsuspecting investors.
Chainalysis revealed that not only did pig butchering scams generate nearly 40% more illicit revenue in 2024, but the number of crypto deposits into these schemes surged by approximately 210%. This sharp rise indicates that scammers are targeting a much broader pool of victims than ever before. Alongside pig butchering, other fraudulent activities such as address poisoning, crypto drainers, livestream scams, and sextortion schemes also saw notable growth last year. The report estimates that at least $9.9 billion worth of crypto was stolen through scams in 2024, with that figure expected to climb as more scam-related wallets are identified by the analytics firm.
“Pig butchering scammers have also evolved to diversify their business model beyond the “long con” of pig butchering scams — which can take months and even years of developing a relationship before receiving victim payments — to quicker turnaround employment or work-from-home scams that typically yield smaller victim deposits,” – The report stated.
Understanding ‘Pig Butchering’ Scams
‘Pig butchering’ scams involve fraudsters building trust with victims over time, often through social media or dating platforms, before convincing them to invest in fraudulent cryptocurrency schemes. The term refers to the process of ‘fattening up’ the victim with promises of high returns before ‘slaughtering’ them by stealing their investments.
While many ‘pig butchering’ scams originate from large compounds in Southeast Asia, recent developments indicate a growing geographic dispersion of these operations. In December 2024, Nigeria’s anti-corruption agency arrested 48 Chinese and 40 Filipino nationals running a scam operation that targeted victims in Europe and the Americas, with local Nigerians recruited to find targets online. Similarly, in June 2024, an Interpol-led operation dismantled a scam network in Namibia that exploited 88 youths for crypto-related fraud. The trend was also observed in October 2023, when Peruvian authorities rescued 43 Malaysians trafficked to Peru and forced into a scam ring.
Sophisticated Platforms and the Rise of AI in Crypto Scams
Chainalysis highlighted that scammers are increasingly utilizing sophisticated platforms to execute their schemes and launder stolen funds. One such platform is Huione Guarantee, a peer-to-peer marketplace linked to Cambodia’s Huione Group, which has processed $70 billion in crypto transactions since 2021. Onchain data suggests that much of this volume comes from illegal crypto schemes.
In 2024 alone, scam vendors on Huione amassed at least $375.9 million, with AI service vendors on the platform seeing a 1900% revenue increase. This surge in AI adoption has enabled scammers to create hyper-realistic images and videos to impersonate victims or deceive targets more convincingly. Additionally, Huione’s data vendors sell stolen personal information, allowing scammers to target vulnerable individuals more effectively, further escalating the threat posed by ‘pig butchering’ scams.
“Huoine Guarantee has become a one-stop-shop for illicit actors needing the technology, infrastructure, and resources to conduct scams — assets like targeted data lists, web hosting services, social media accounts and content creation, and AI software,”– Chainalysis reported
