According to blockchain analytics firm Chainalysis, the prevalence of “pig butchering” scams and the escalating use of generative artificial intelligence (GenAI) contributed to a surge in revenues from cryptocurrency scams, reaching unprecedented levels in 2024.
Chainalysis estimates that revenue from pig butchering scams—the practice where fraudsters build relationships with victims to lure them into fraudulent schemes—grew nearly 40 percent in 2024 compared to the previous year, as detailed in a report released on Thursday.
In 2024, revenue from cryptocurrency scams is projected to be at least $9.9 billion (approximately Rs. 85,996 crore), with potential further increases pushing the total to a high of $12.4 billion (around Rs. 1,07,711 crore) once additional data is compiled.
Researchers at Chainalysis noted that the sophistication of crypto scams continues to evolve.
The firm highlighted the existence of online marketplaces that facilitate pig butchering schemes and noted that GenAI has made it simpler and more cost-effective for scammers to enhance their operations.
Chainalysis stated that the application of GenAI technology could significantly amplify the scale of cryptocurrency scams.
The organization has tracked publicly available blockchain transaction data, revealing that crypto fraud activities have increased annually by an average of 24 percent since 2020.
The cryptocurrency market, particularly Bitcoin, has witnessed remarkable growth in both price and interest over recent years as investors sought substantial returns, further fueled by rising enthusiasm for blockchain technology.
Significant changes in the sector were noted following former US President Donald Trump’s election victory in November, which heightened expectations for a more favorable regulatory landscape.
Chainalysis also identified other profitable scams, such as “crypto drainers,” where scammers impersonate blockchain projects to gain unauthorized access to victims’ cryptocurrency wallets, and high-yield investment scams that lure individuals with promises of excessive returns.
In January 2024, a notable incident involved a crypto drainer masquerading as the US Securities and Exchange Commission after the regulator’s X account was compromised.
Chainalysis reported that cryptocurrency ATMs have become prime locations for scams, with perpetrators often posing as government officials or customer service representatives to persuade victims to deposit cash into these machines.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
