Crypto fraudsters may have pocketed as much as a record $ 12.4 billion last year, partly burned by the growth of so-called pig-butching schemes, Blockchain Analytics Company Chainalysis said.

The revenue of the fraudsters from such schemes where they build the victims’ confidence before convincing them to make false cryptoin investments and named after the exercise of pigs prevailing before slaughter, 40% rose to at least $ 9.9 billion.

While law enforcement authorities around the world have targeted such operations, scammers have refined their tactics, chainalysis said. The scammers utilize artificial intelligence and expand their network across more countries and become more professionalized, the report says. The total fraud activity has increased 24% a year since 2020.

Chainalysis highlighted platforms such as Huione Warranty, a peer-to-peer-market space that, says it, acts as a “one-stop shop” for scams needs. These services include money laundering, social media management, or data sales. According to Chainalysis, Huione warranty, at least $ 375.9 million received Cryptocurrency in 2024.

Scammers directly victims to false investment platforms and convinces them to send funds to wallets they control. Once the money is transferred, the victims are unable to withdraw them and scammers disappear.

While the authorities have made progress in tracking and closing false operations, the large amount of scams showing the challenges that lie ahead of us. With the continued increase in AI-driven deception, chainalysis warns that more aggressive countermeasures may be needed to limit crypto-related fraud.

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