Crypto scammers may have pocketed as much as a record $12.4 billion last year fueled, in part, by growth of so-called pig-butchering schemes, blockchain analytics firm Chainalysis said.
Fraudsters’ revenue from such schemes, in which they build up victims’ trust before convincing them to make fraudulent crypto investments and named after the practice of fattening swine before slaughter, rose 40% to at least $9.9 billion.
While law enforcement agencies worldwide have targeted such operations, scammers have refined their tactics, Chainalysis said. The scammers leverage artificial intelligence and are expanding their networks across multiple countries, becoming more professionalized, the report said. Overall scam activity has increased 24% a year on average since 2020.
Chainalysis highlighted platforms like Huione Guarantee, a peer-to-peer marketplace that, it says, functions as a “one-stop-shop” for scammers’ needs. Those services…
