New data from market analytics platform Chainalysis reveals that “pig butchering” schemes are the most lucrative type of crypto scam in 2024.
In its 2024 crypto crime mid-year report, Chainalays reveals that pig butchering – or a scheme where bad actors use online personas to slowly gain the trust of their victims to encourage them to invest in fake opportunities – generated the most revenue in 2024.
“Pig butchering is the largest revenue-generating scam type YTD (year to date). One Myanmar-based scam compound first observed on-chain in 2022 has netted at least $101.22 million so far this year.”
According to the crypto intelligence firm, one of the biggest offenders in the crypto space is Huione Guarantee, a fraudulent Chinese investment company that started legitimately.
“Huione Guarantee has processed more than $49 billion in cryptocurrency transactions since 2021, significantly more than previously reported…
Historically, Huione Group has offered legitimate services, operating as a remittance system for overseas transfers, and providing insurance services.
At one point, the company also dabbled in the luxury tourism business. However, its platform, Huione Guarantee, appears heavily used for illicit crypto-based activities, including pig butchering, investment fraud, and money laundering.”
Chainalysis goes on to note that scammers are now partaking in shorter scams as a means of boosting efficiency and avoiding detection.
“Scammers are adapting on-and-off chain to conduct more devastating scams of shorter duration. To hedge against discovery and disruption, many of these operations regenerate or maintain many smaller, simultaneous campaigns that keep larger organized scam syndicates going.”
Earlier this year, the Department of Justice (DOJ) charged two Chinese nationals for allegedly running a pig butchering scam and laundering millions of dollars. The duo was caught with a crypto wallet with over $340 million worth of stolen digital assets and is facing decades behind bars.
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