‘Pig Butchering’ Scams Remain Dangerous Threat in Crypto Markets, Chainalysis Report Says

Crypto scammers are getting savvier in their efforts to steal digital assets, warns blockchain analytics company Chainalysis in a new report.

Scams are driving the majority in 2024’s multibillion-dollar crypto-crime sector, per the report published Thursday. Though large by dollar value, this sum is still relatively small: less than 1% of on-chain value is linked to illicit activity, said Chainalysis’ research lead Eric Jardines.

Other illicit uses are gaining traction, including using crypto in child exploitation material and other cybercrime tools. Scams remain the largest part of the bucket.

Given the havoc that so-called pig butchering scams can wreak on individuals, anyone with a crypto wallet should take care. Pig butchering scammers “fatten” up their targets with romantic overtures and other tactics that build trust before hitting them with a fake investment opportunity, stealing their funds.

Stealing the money is, however, only half the battle. Scammers need to exit their positions and centralized crypto exchanges, the most obvious off-ramp, have gotten better over the years at stomping some illicit activity.

Enter Huione Guarantee. It’s an online marketplace managed by a Cambodian conglomerate where anyone can post offers to buy, or sell, just about anything – including crypto. The marketplace only acts as a facilitator; other than moving money around, it doesn’t regulate who is getting the money, or where they got it from.

Since 2021 the platform has processed $49 billion in crypto transactions, according to Chainalysis. The company said it believes at least some of that activity is linked to crypto-criminals running pig butchering and money laundering operations.