Pig butchering scams rob investors of $5.5B, possibly the biggest threat to retail investors

Onchain security firm Cyvers revealed that pig butchering scams were one of the most pervasive threats to crypto investors, with losses reaching $5.5 billion in 2024. The report also indicated that pig butchering scams scammed investors in 200,000 identified cases last year.

A report by Chainalysis also revealed that pig butchering, a type of romance and investment scam, received 33.2% of the most crypto among scam sub-classes. Pig butchering scams also recorded an increase of 40% year over year of scam revenue. The number of deposits to pig butchering scams also grew nearly 210% over the same period.

Pig butchering scams steal nearly $5.5B in 2024

Pig butchering scams stole $5.5B from crypto investors in 2024. These scams manipulate victims for weeks or months, tricking them into sending funds to fake platforms.
200,000 cases identified on Ethereum alone. pic.twitter.com/0KCuIl6ufE

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) February 20, 2025

Cyvers reported that pig butchering scams had received over $5.5 billion in 1.15 million fraudulent transactions. Pig butchering scams are manipulative tactics that deceive victims into transferring billions to fake investment platforms.

The report indicated that the schemes on the Ethereum network cost the industry over $5.5B across 200,000 identified cases in 2024. It also identified pig butchering scams that affected three of the five largest centralized exchanges (CEXs), a crypto-friendly bank, and an institutional trading platform.  

Michael Pearl, vice president of GMT strategy at Cyvers, believes that pig butchering schemes are “by far the biggest threat,” even compared to crypto hacks. In 2024, cryptocurrency hackers stole over $2.3 billion worth of digital assets across 165 incidents. There was also a 40% increase in crypto hackers in 2024 compared to 2023 when losses totaled $1.69 billion.

Cyvers maintained that pig butchering scams were a type of phishing scheme different from hacks, where attackers trick users into willingly sending their assets. The firm reported that the average grooming period for victims lasted between one and two weeks in 35% of cases. Ten percent of pig butchering scams also involved grooming periods of up to three months.

The data showed that 75% of pig butchering scam victims lost over half of their net worth to the scams. According to the company, pig butchering scams mostly affected men aged 30 to 49. Cyvers also found that generative artificial intelligence and AI-based social media chatbots were helping scammers scale their attacks.

Deddy Lavid, co-founder and CEO of Cyvers, said that central exchanges were the most affected by pig butchering scams. Lavid added that CEXs were hemorrhaging millions, grappling with a reputational crisis, struggling to maintain banking relationships, and facing increased regulatory scrutiny. He also acknowledged that efforts to combat the scams were underway and would range from industry-led initiatives to government-driven regulatory actions and enforcement efforts.

Cyvers also revealed that December 2024 was the biggest month for pig butchering schemes. The scams cost the industry over $468 million from $424M in November 2024. 

Pig butchering scams increased in 2024

The Attorney’s Office for the District of Columbia had filed a lawsuit in July 2024 to recover digital assets seized by the FBI from pig butchering scams abroad. The Attorney’s Office wanted to forfeit 2.5M USDT seized from two accounts controlled by a pig butchering perpetrator in Thailand.

“The rate at which bad actors are using elaborate pig-butchering scams to defraud innocent people is despicable. The FBI and our law enforcement partners continue to evolve investigative techniques to thwart the progression of this threat and use all available resources to ensure we disrupt and dismantle organizations responsible for contributing to these crimes.”

– Special Agent Stacey Moy of the FBI’s San Diego Field Office.

Chainalysis reported that pig butchering scammers had evolved to diversify their business model beyond the “long con” of pig butchering scams. Pig butchering scams could take months and even years to first develop a relationship, but scammers now prefer employment or work-from-home scams that typically yield smaller victim deposits.

The research noted that cybersecurity company Proofpoint found a fraudulent job site impersonating a record label offering work-from-home jobs. The job site had sent crypto to consolidation wallets, and a pig butchering scam also sent funds. Proofpoint had shared consolidation addresses, and Chainalysis was able to connect the scam domains on-chain.

The research firm also noted that Nigeria’s anti-graft agency had arrested almost 800 people in a raid on a building in December last year. The suspects were alleged to be running romance scams that targeted people mostly from Europe and the U.S.

Cryptopolitan Academy: How to Write a Web3 Resume That Lands Interviews - FREE Cheat Sheet