TLDR

• Pig butchering crypto scams increased revenue by 40% in 2024, with deposit numbers growing 210%, though average deposit amounts fell 55%
• Scammers are diversifying into quick-turnaround employment scams alongside traditional romance schemes
• Huione Guarantee platform processed $70 billion in crypto since 2021, becoming a major hub for scam infrastructure
• AI service vendor revenue on Huione increased by 1900% in 2024, indicating growing use of AI in scams
• Total crypto scam losses reached at least $9.9 billion in 2024, with multiple scam types showing growth

Crypto scammers ramped up their operations in 2024, with pig butchering scams leading the charge as revenue jumped 40% compared to the previous year, according to a new report from blockchain analytics firm Chainalysis.

The report reveals a dramatic 210% increase in the number of deposits into pig butchering scam wallets, though the average deposit amount dropped by 55%. This shift suggests scammers are targeting more victims with smaller amounts rather than focusing on fewer high-value targets.

Pig butchering scams, named for the practice of “fattening up” victims before taking their money, traditionally operate as romance scams where fraudsters build trust with victims before convincing them to make fraudulent investments. These operations typically run from scam centers across Southeast Asia, though Chainalysis notes they have recently spread to other regions.

In 2024, scammers adapted their tactics to include fake work-from-home employment offers. These schemes offer a quicker return than traditional romance scams, though they typically yield smaller amounts per victim.

The rise in scam activity coincides with the emergence of Huione Guarantee as a major platform for crypto-based illegal schemes. The peer-to-peer marketplace, affiliated with Cambodian conglomerate Huione Group, has processed $70 billion worth of crypto transactions since 2021.

Huione Guarantee has become what Chainalysis describes as a “one-stop-shop” for scammers, providing access to targeted data lists, web hosting services, social media accounts, and AI software. In 2024, scam vendors using the platform collected at least $375.9 million in cryptocurrency.

The Rise of AI Scams

The platform’s AI service vendors saw a massive 1900% increase in revenue, pointing to growing use of artificial intelligence in scam operations. These AI tools help scammers create realistic fake images and videos to deceive victims.

Data vendors on Huione also trade in stolen personal information, which scammers use to identify and target individuals who might be more susceptible to their schemes.

The platform’s reach extends beyond typical scam operations. Last year, North Korea’s Lazarus hacking group reportedly sent over $150,000 in cryptocurrency to Huione’s payment app, according to Reuters.

Besides pig butchering, other types of crypto scams showed growth in 2024. Crypto drainers saw a 170% increase in revenue and a 75% rise in deposits. Address poisoning scams, which target users with large wallet balances, grew by 15,000% following a major attack in May.

High-yield investment scams remained the largest sub-category, receiving 50.2% of all scam deposits, while pig butchering scams accounted for 33.2%.

The total impact of crypto scams in 2024 reached at least $9.9 billion, though Chainalysis expects this number to increase as more scam wallets are identified.

Scammers have shown increasing sophistication in their use of technology platforms to execute scams and launder funds. The combination of AI tools, stolen data, and established infrastructure through platforms like Huione Guarantee has created an interconnected ecosystem that continues to expand.

The changes in deposit patterns suggest a shift in strategy across the industry. Scammers appear to be moving away from long-term schemes that require extensive victim preparation, instead opting for higher-volume, lower-value approaches.

These developments come as blockchain analysis firms and law enforcement agencies work to track and combat crypto-based fraud. However, the growing use of AI and other advanced technologies presents new challenges for detection and prevention efforts.

The Huione Group has not responded to requests for comment about their platform’s alleged role in facilitating these operations.