Crypto scams, particularly high-yield investment scams and pig butchering schemes, accounted for the largest share of fraudulent crypto transactions in 2024, according to a new study by Chainalysis.
High-yield scams received 50.2% of all illicit crypto inflows, while pig butchering scams accounted for 33.2%.
Pig Butchering Scams Jump 40% Year-Over-Year
Long-term fraud operations, known as pig butchering scams, saw a 40% increase in 2024, as scammers refined their tactics and expanded to new regions. These scams, which originate primarily from fraud hubs in Southeast Asia, have rapidly spread worldwide.
According to Chainalysis, scammers have evolved their strategies beyond the traditional “long con” approach, now incorporating “quick turnaround” work-from-home and employment scams that generate smaller but more frequent victim deposits.
Alarming Growth in Crypto Scams
On-chain data from 2024 reveals a significant rise in multiple scam types, including:
- Pig butchering scams → 210% increase in deposits
- Crypto drainers → 170% revenue growth (75% increase in deposits)
- Address poisoning scams → 15,000% surge due to a major attack in May
- Livestream scams and blackmail/sextortion → Increasing activity across multiple platforms
Despite the surge in total deposits, the average victim deposit in pig butchering scams dropped by 55%, suggesting that fraudsters are targeting a higher volume of victims with smaller transactions.
Huione Guarantee and the Role of Illicit Payment Networks
The report also highlights Huione Guarantee, a peer-to-peer crypto platform linked to Huione Group, as a major player in supporting fraudulent operations. Since 2021, Huione Guarantee has processed over $70 billion in crypto transactions, facilitating transactions tied to pig butchering scams and other illicit activities.
Conclusion
As crypto scams continue to evolve, fraudsters are refining their business models and targeting a broader audience. The rapid rise of pig butchering scams and other fraudulent tactics underscores the urgent need for increased security awareness and more robust blockchain forensic efforts to combat crypto-related fraud.
