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 include money laundering, social media management or selling data, among others. According to Chainalysis, Huione Guarantee, received at least $375.9 million in cryptocurrency in 2024.

Fraudsters direct victims to fake investment platforms, convincing them to send funds to wallets they control. Once the money is transferred, victims are unable to withdraw it, and scammers disappear.

While authorities have made progress in tracking and shutting down fraudulent operations, the sheer volume of scams shows the challenges ahead. With the continued rise of AI-powered deception, Chainalysis warns that more aggressive countermeasures may be needed to curb crypto-related fraud.

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