The prevalence of “pig butchering” scams and the growing use of generative artificial intelligence (GenAI) have likely driven cryptocurrency scam revenues to an all-time high in 2024, according to blockchain analytics firm Chainalysis.
In its latest report released on Thursday, Chainalysis estimated that earnings from pig butchering scams—where fraudsters establish trust with victims and persuade them to invest in deceptive schemes—rose by nearly 40% in 2024 compared to the previous year.
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Total crypto scam revenues for 2024 were recorded at $9.9 billion, with the potential to reach $12.4 billion as more data becomes available.
“Crypto fraud and scams have become increasingly sophisticated,” stated Chainalysis researchers.
The firm highlighted that online marketplaces supporting pig butchering scams and the accessibility of GenAI tools have lowered costs and simplified the process for scammers to scale their operations. Chainalysis warned that AI-driven fraud could lead to an exponential increase in crypto scams.
Tracking publicly available blockchain transactions, Chainalysis found that fraudulent crypto activities have grown by 24% annually on average since 2020.
Meanwhile, the value and popularity of cryptocurrencies—especially Bitcoin—have surged as investors continue chasing high returns and showing increased interest in blockchain technology.
The sector has seen further momentum following Donald Trump’s victory in the November 2024 U.S. election, with expectations of more lenient regulations.
Beyond pig butchering, other major crypto scams include crypto drainers, where fraudsters disguise themselves as blockchain projects to gain control over victims’ digital wallets, and high-yield investment schemes that promise unrealistically high returns.
In January 2024, a crypto drainer impersonated the U.S. Securities and Exchange Commission (SEC) after hackers compromised the regulator’s X (formerly Twitter) account.
Additionally, cryptocurrency ATMs have become hotspots for fraudulent activities, as scammers often impersonate government officials or customer service agents to manipulate victims into depositing cash into these machines.
