Crypto Scammers Amass Record $12.4 Billion Amid Rising Fraud Tactics

According to CoinDesk, crypto scammers may have accumulated a record $12.4 billion last year, driven significantly by the rise of 'pig-butchering' schemes. These schemes involve fraudsters gaining victims' trust before persuading them to invest in fraudulent cryptocurrency ventures. The term is derived from the practice of fattening pigs before slaughter. Revenue from these scams surged by 40%, reaching at least $9.9 billion. Despite global law enforcement efforts to dismantle such operations, scammers have adapted and refined their methods, as reported by blockchain analytics firm Chainalysis. They are increasingly utilizing artificial intelligence and expanding their networks across multiple countries, becoming more professionalized. Since 2020, overall scam activity has grown by an average of 24% annually. Chainalysis also pointed out platforms like Huione Guarantee, a peer-to-peer marketplace that allegedly serves as a comprehensive resource for scammers. This platform reportedly received at least $375.9 million in cryptocurrency in 2024, offering services such as money laundering, social media management, and data sales. Fraudsters typically lure victims to fake investment platforms, convincing them to transfer funds to wallets under the scammers' control. Once the money is sent, victims find themselves unable to retrieve it, as the scammers vanish. Although authorities have made strides in tracking and shutting down these fraudulent operations, the sheer volume of scams highlights the ongoing challenges. With the increasing sophistication of AI-powered deception, Chainalysis suggests that more aggressive countermeasures may be necessary to combat crypto-related fraud effectively.