Crypto Scam Revenue Hits Record $9.9B as Pig Butchering Surges 40%: Chainalysis

Crypto scams reached unprecedented levels in 2024, with Chainalysis estimating at least $9.9 billion in on-chain scam revenue. This figure is expected to grow as more illicit addresses are identified.

This record-breaking year gives insight into the current state of crypto scams, particularly through high-yield investment scams (HYIS) and pig butchering schemes. 

While HYIS saw a decline in inflows, pig butchering scams surged by nearly 40%. Additionally, emerging threats such as employment scams and crypto drainers signal a diversification in fraudulent schemes.

The rapid rise of professionalized scam operations, such as Huione Guarantee, has exacerbated the problem, providing illicit actors with the tools and infrastructure to conduct large-scale fraud. 

Notably, global law enforcement agencies are attempting to crack down on these operations to combat the growing threat with new regulatory measures and AI-driven fraud detection tools.

High-Yield Investment and Pig Butchering Scams Lead Crypto Fraud

In 2024, high-yield investment scams (HYIS) and pig butchering scams collectively accounted for over 83% of total scam revenue. 

Despite a 36.6% decline in HYIS inflows, they still represented the largest share of scam activity, demonstrating the enduring appeal of Ponzi-like structures promising outsized returns. 

One notable case, Smart Business Corp, targeted Spanish-speaking investors and earned $1.5 billion on the blockchain despite warnings from Mexican financial regulators.

Conversely, pig butchering scams saw a significant expansion, with a 40% increase in revenue and a staggering 210% rise in the number of victim deposits. 

These scams now operate globally despite originating primarily from Southeast Asia, with recent crackdowns in Nigeria, Namibia, and Peru. 

Scam operations have also evolved beyond traditional romance investment fraud, incorporating fraudulent employment schemes that trick victims into sending funds under the guise of job-related payments. 

The FBI and cybersecurity firms have warned that these scams are becoming more sophisticated, leveraging social media ads and domain-switching tactics to avoid detection.

The Growth of Professionalized Scam Networks and New Fraud Tactics

The professionalization of scam networks has led to a rise in illicit services catering to fraudsters. 

Platforms like Huione Guarantee offer a marketplace for money laundering services, identity forgery, and tech infrastructure that enables large-scale pig butchering operations. 

These services significantly lower the barriers to entry for scammers, allowing them to operate at scale with minimal risk.

New fraud tactics have also emerged, with crypto drainers and address poisoning scams growing rapidly in 2024. 

Crypto drainers saw a 170% revenue increase, with one high-profile case involving scammers impersonating the U.S. SEC to steal funds via a fake token airdrop. 

Address poisoning scams, where attackers trick victims into sending funds to fraudulent lookalike addresses, grew by an astonishing 15,000% following a massive attack in May.

Another common scam method in 2024 was social media account hack, particularly X. 

According to a report from December 2024, blockchain investigator ZachXBT uncovered a coordinated phishing scam targeting Solana meme coin investors, resulting in the hacking of over 15 X accounts and the theft of approximately $500,000. 

1/3 A threat actor has stolen ~$500K over the past month by compromising 15+ X accounts (Kick, Cursor, Alex Blania, The Arena, Brett, etc) from sending targeted phishing emails which impersonated the X team to steal credentials and then launch meme coin scams. pic.twitter.com/HEWQdVICgJ

— ZachXBT (@zachxbt) December 24, 2024

The attacker, impersonating the X team, sent phishing emails disguised as copyright infringement notices, tricking victims into resetting their passwords and two-factor authentication. 

Once compromised, these accounts were used to promote fraudulent Solana-based tokens, urging followers to invest using SOL. 

Despite efforts to conceal the operation by bridging funds between Solana and Ethereum, investigators linked all 15 account takeovers to a single threat actor.

X has increasingly become a target for cybercriminals, as evidenced by several high-profile hacks in recent months.