In 2024, crypto scams are projected to generate at least $9.9 billion, largely due to the rise of 'pig butchering' schemes, according to a Chainalysis report. These scams combine investment and romance fraud to deceive victims into investing in fake crypto platforms.

Chainalysis warns that the projected scam revenue is conservative, potentially exceeding $12 billion. The report highlights a 40% increase in 'pig butchering' scams, which now account for a third of total crypto scam revenue.

Many scams originate in Southeast Asia, with illicit services like Huione Guarantee aiding fraudsters. This includes Telegram-based fraud marketplaces and money laundering tools, contributing to a $70 billion fraudulent transaction ecosystem since 2021.

The report also notes the involvement of generative AI in scams, enhancing their deceptive capabilities. Other growing methods include address poisoning, crypto drainers, and AI-generated scams like deepfakes.

Chainalysis cites mounting challenges for law enforcement, particularly with decentralized finance (DeFi) making illicit fund tracking more complex.