Crypto Scams Surge to $10 Billion in 2024, Reports Chainalysis

Chain analysts and law enforcement are raising concerns over the "pig-butchering" scam, where victims are manipulated online into fake crypto investments. In 2024, nearly $10 billion was sent in crypto scams, with pig-butchering revenue increasing by 40% year-over-year. The number of deposits rose by over 200%, though the average deposit size decreased by about 55%. This indicates a shift towards targeting more victims for smaller amounts, making it lucrative and difficult to trace.

Organized Networks Behind The Scams

Scam networks operate like organized criminal enterprises.
Some operations use trafficked workers to manage victims.
These scams have been linked to regions in Southeast Asia.
Money is moved through concentrated crypto wallets.

AI And Marketplaces Aid Scammers

Generative AI and online marketplaces make scams cheaper and faster.
AI tools create chatbots, voice clones, and fake profiles.
Marketplaces provide services to build realistic investment sites.

Infrastructure And Sanctions

The US Treasury sanctioned Funnull Technology Inc., linked to scam infrastructure.
Funnull's services tied to scams resulted in US losses exceeding $200 million.
Sanctions aim to disrupt web services used by scammers.

Exchanges And Stablecoin Issuers Respond

Exchanges, USDT issuers, and Chainalysis helped block nearly $47 million in illicit funds.
Industry cooperation prevents some cash-outs before conversion to fiat.