The rise of “pig butchering” scams and the increasing use of generative artificial intelligence (GenAI) have likely pushed crypto scam revenues to record highs in 2024, according to blockchain analytics firm Chainalysis.
In its latest report, Chainalysis estimated that revenue from pig butchering scams—where fraudsters build trust with victims before luring them into fake investment schemes—surged nearly 40% in 2024 compared to the previous year.
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Total revenue from crypto scams reached at least $9.9 billion in 2024, with projections suggesting it could climb to a record $12.4 billion as more data becomes available.
“Crypto fraud and scams have continued to increase in sophistication,” noted Chainalysis researchers, highlighting how marketplaces supporting pig butchering operations and advancements in GenAI are making scams easier and more cost-effective to scale.
Since 2020, crypto fraud activity has grown at an average rate of 24% annually, with scammers exploiting the rising popularity of cryptocurrencies, particularly Bitcoin.
Among the most lucrative scams were crypto drainers—where fraudsters pose as blockchain projects to gain control of victims’ wallets—and high-yield investment schemes promising unrealistic returns.
In one notable case in January 2024, a crypto drainer impersonated the U.S. Securities and Exchange Commission (SEC) after the agency’s X account was compromised.
Cryptocurrency ATMs have also become hotspots for scams, with fraudsters impersonating government officials or customer support representatives to trick victims into depositing cash into these machines.
The sector has seen significant growth following Donald Trump’s victory in the November election, driven by hopes of a more favorable regulatory environment. However, the surge in scams underscores the increasing challenges in combating crypto fraud.
