Pig Butchering Crypto Scams Surge in 2024

Pig butchering crypto scams saw nearly a 40% rise in illicit revenue year-over-year in 2024, according to Chainalysis. This increase contributed to a larger overall number of crypto scams.

Increased Deposits

Deposits into pig butchering scams grew by almost 210%, suggesting a potential expansion of the victim pool. These scams, also known as romance scams, build trust with users to lure them into fraudulent investments.

Chainalysis pointed out that the majority of these scams originate from Southeast Asia, with scammers becoming increasingly dispersed worldwide in recent years. Additionally, scammers have adapted their strategies, targeting the unemployed with fake work-from-home job offers that yield quicker, though smaller, revenues compared to traditional romance scams.

Despite increasing revenue and deposits into scam wallets, the average deposit amount to pig butchering scams dropped by 55% year-over-year, indicating a shift in scam tactics. For instance, one fraudulent job website impersonated a record label, directing crypto to consolidation wallets also used for pig butchering scams.

Other scams, such as address poisoning, crypto drainers, livestream scams, and sextortion also grew in 2024. Chainalysis estimates that crypto scams collectively stole at least $9.9 billion from victims last year, a figure likely to rise as more scam wallets are discovered.

Destination: Huione

Chainalysis noted that scammers are increasingly utilizing sophisticated platforms for executing scams and laundering funds. A significant amount of funds has been traced back to Huione Guarantee, a peer-to-peer marketplace tied to the Cambodian conglomerate Huione Group.

Since 2021, Huione has processed $70 billion in crypto, primarily linked to illegal schemes. The platform has become a hub for illicit actors, providing technology, infrastructure, and resources needed to conduct scams, including targeted data lists and AI software.

In 2024, scam vendors on Huione accumulated at least $375.9 million in crypto, with AI service vendors seeing a 1900% revenue increase, reflecting an explosive growth in AI technology that aids scammers in impersonating individuals and deceiving victims.

Moreover, data vendors on Huione reportedly sell stolen personal information, specifically targeting individuals vulnerable to pig butchering.

Last year, it was reported that North Korea’s notorious hacker group, Lazarus, transferred over $150,000 in crypto to Huione’s payment app. The Block reached out to Huione for comments but did not receive a response.

In summary, Huione Guarantee has become a major player in driving and facilitating a massive, interconnected scam ecosystem, as highlighted by Chainalysis.