Pig butchering scams, a sophisticated phishing strategy, have become a major threat to cryptocurrency investors, resulting in a staggering $5.5 billion in losses across 200,000 cases in 2024, as revealed by Cyvers, an onchain security firm. These scams involve intricate manipulation tactics to deceive investors into transferring their assets to fraudulent addresses, particularly impacting Ethereum network users.
In 2024, pig butchering schemes proved more damaging than conventional crypto hacks, which accounted for $2.3 billion in losses over 165 incidents. Cyvers identified some of the most affected platforms, including centralized exchanges and a crypto-friendly bank.
The grooming process required for these scams typically spans between one to two weeks but can extend up to three months in more complex cases. Alarmingly, 75% of victims lost over half of their net worth, with men aged 30 to 49 being the most frequent targets. The advancement of generative artificial intelligence and AI-powered chatbots has further facilitated the scammers’ ability to scale their operations.
Deddy Lavid, CEO of Cyvers, emphasized the broader impact on crypto platforms, which are suffering from financial losses, reputational challenges, and intensified regulatory scrutiny. December 2024 marked the peak of these scams, causing the industry to lose over $468 million, surpassing November’s losses. Efforts to tackle this growing threat are underway, with a combination of industry and government-led initiatives aimed at regulatory compliance and enforcement.
