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Fraudsters raked in at least $9.9 billion and possibly as much as $12.4 billion with their methods becoming more “professionalized.”
By Helene Braun, CoinDesk Bot|Edited by Sheldon Reback
Feb 13, 2025, 4:40 p.m. UTC
What to know:
- Crypto scam revenue surged in 2024, with ‘pig butchering’ and AI schemes bringing in more money year-over-year.
- Total crypto scam earnings exceeded $9.9 billion despite a broader crackdown on fraudulent operations.
- Scammers adapted tactics, using AI, social engineering and international networks to lure victims.
Crypto scammers may have pocketed as much as a record $12.4 billion last year fueled, in part, by growth of so-called pig-butchering schemes, blockchain analytics firm Chainalysis said.
Fraudsters’ revenue from such schemes, in which they build up victims’ trust before convincing them to make fraudulent crypto investments and named after the practice of fattening swine before slaughter, rose 40% to at least $9.9 billion.
STORY CONTINUES BELOW
While law enforcement agencies worldwide have targeted such operations, scammers have refined their tactics, Chainalysis said. The scammers leverage artificial intelligence and are expanding their networks across multiple countries, becoming more professionalized, the report said. Overall scam activity has increased 24% a year on average since 2020.
Chainalysis highlighted platforms like Huione Guarantee, a peer-to-peer marketplace that, it says, functions as a “one-stop-shop” for scammers’ needs. Those services include money laundering, social media management or selling data, among others. According to Chainalysis, Huione Guarantee, received at least $375.9 million in cryptocurrency in 2024.
Fraudsters direct victims to fake investment platforms, convincing them to send funds to wallets they control. Once the money is transferred, victims are unable to withdraw it, and scammers disappear.
While authorities have made progress in tracking and shutting down fraudulent operations, the sheer volume of scams shows the challenges ahead. With the continued rise of AI-powered deception, Chainalysis warns that more aggressive countermeasures may be needed to curb crypto-related fraud.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
Helene is a New York-based news reporter at CoinDesk, covering news about Wall Street, the rise of the spot bitcoin exchange-traded funds (ETFs) and updates on crypto exchanges. She is also the co-host of CoinDesk’s Markets Daily show on Spotify and Youtube. Helene is a recent graduate of New York University’s business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.
“CoinDesk Bot” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy here.
