According to a recent report from blockchain analytics firm Chainalysis, revenue from cryptocurrency scams skyrocketed to a record high in 2024. The upswing is largely attributed to the proliferation of “pig butchering” scams and the increasing use of generative artificial intelligence (GenAI).
Chainalysis estimates that revenue from pig butchering scams – where perpetrators build relationships with individuals to lure them into fraudulent schemes – climbed nearly 40% in 2024 compared to the previous year.
The firm’s report, published on Thursday, reveals that crypto scam revenue reached at least $9.9 billion in 2024. However, that figure could potentially climb to a record $12.4 billion once more data becomes available. “Crypto fraud and scams have continued to increase in sophistication,” stated Chainalysis researchers.
Chainalysis highlighted the role of marketplaces supporting pig butchering operations and the integration of GenAI as key factors that facilitate expansion for scammers. The company further noted that GenAI technology could potentially “exponentially scale crypto scams.”
Chainalysis tracks publicly available transaction data on the blockchain to identify scam revenue. The company revealed that crypto fraud activity has grown by an average of 24% annually since 2020.
The cryptocurrency sector, including Bitcoin, has experienced significant growth in both price and popularity over recent years, attracting investors seeking high returns. This growth has been further fueled by increased interest in blockchain technology. The sector has also surged since the November election, driven by the hope of a more relaxed regulatory environment.
Other lucrative scams identified by Chainalysis included crypto drainers, which involve scammers posing as blockchain projects to seize control of victims’ crypto wallets, and high-yield investment scams that promise inflated returns.
In January 2024, a crypto drainer impersonated the U.S. Securities and Exchange Commission after the regulator’s X (formerly Twitter) account was compromised. Chainalysis also pointed out that cryptocurrency ATMs have become pivotal hotspots for scams. Scammers often impersonate government officials or customer support agents to deceive victims into depositing cash into these machines.
