Funds lost in pig butchering crypto scams soared 40% in 2024: Chainalysis

Pig butchering crypto scams jumped nearly 40% in illicit revenue year-over-year in 2024, contributing to a yearly rise in overall number of crypto scams, Chainalysis said.

The number of crypto deposits into pig butchering scams grew nearly 210%, where the blockchain analytics firm suggested a potential expansion of the victim pool.

Pig butchering scams, also known as romance scams, build trust from users and then lure them into fraudulent investments. Chainalysis said such scams mainly originate from scam centers across Southeast Asia, while scammers have become globally dispersed over the past years.

Scammers have also reportedly evolved their business model to target the unemployed with fake work-from-home employment offer scams, yielding smaller revenue but with a quicker turnaround than romance scams.

Despite the growth of revenue and deposits into scam wallets, the average deposit amount to pig butchering scams decreased 55% year over year, indicating a change in scam strategy.

“One such example, a fraudulent job site impersonating a record label offering work-from-home jobs, sent crypto to consolidation wallets where a pig butchering scam also sent funds,” the report said.

Along with pig butchering scams, address poisoning, crypto drainers, livestream, and sextortion scams grew in 2024, according to the report.

Chainalysis estimates crypto scams collectively took at least $9.9 billion worth of crypto from victims last year, with that number likely to grow as the firm discovers more scam wallets.

Destination: Huione

Chainalysis reported that scammers have become more aware of sophisticated platforms to facilitate the execution of scams and laundering of funds. 

An increasing amount of funds were seen being sent to Huione Guarantee, a peer-to-peer marketplace reportedly affiliated with Cambodian conglomerate Huione Group. 

The platform has processed $70 billion worth of crypto since 2021, where onchain data suggests that it is being largely used by crypto-based illegal schemes.

“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 said.

In 2024, scam vendors using Huione amassed at least $375.9 million in crypto collectively, where the AI service vendors’ revenue increased by 1900%, Chainalysis data showed. 

The research firm said this indicates an “explosion” in the use of AI technology that helps scammers impersonate others or trick victims by generating hyper-realistic images or videos. Data vendors on Huione also reportedly sell stolen personal data that scammers use to target those more vulnerable to pig butchering.

Last year, Reuters reported that North Korea’s infamous crypto hacker group Lazarus sent crypto worth over $150,000 to Huione’s payment app. 

The Block has reached out to Huione for comment but has not received a response.

“In short, Huione Guarantee has driven and enabled a scam ecosystem that is massive, growing, and interconnected,” Chainalysis said.