Cryptocurrency scams continue to escalate, with on-chain scam revenue reaching at least $9.9 billion in 2024.
The latest Scams chapter of Chainalysis’ 2025 Crypto Crime Report shows that crypto scams continue to escalate, with on-chain scam revenue reaching at least US$9.9 billion in 2024. The figure is expected to exceed $12 billion as more illicit activity is identified, and reflects a broader trend of rising scam revenue, which has grown 24% annually since 2020.
Pig Butchering and AI-Powered Fraud
High-yield investment scams (HYIS) and pig butchering accounted for over 83% of all scam revenue. While HYIS saw a 36.6% decline, pig butchering scams surged by 40% year-over-year (YoY), spreading beyond Southeast Asia and expanding into employment-related fraud.
- Crypto drainers (malware used to empty wallets) grew by 170% YoY.
- Address poisoning scams (which manipulate transaction histories) increased by 15,000%, largely due to a single large-scale attack in May.
The scam ecosystem has also become more sophisticated and professional with platforms like Huione Guarantee providing fraudsters with illicit services. These operations have processed $70 billion in crypto transactions since 2021, while AI-powered scams have grown by 1,900%, allowing scammers to create highly convincing fake identities and content.
Crypto ATMs: A Rising Tool for Fraud
Crypto ATMs, or Bitcoin kiosks, enable users to buy and sell cryptocurrency but have become a popular tool for scammers. Fraudsters often pose as tech support, government officials, or customer service agents, pressuring victims to withdraw cash and deposit it into a crypto ATM under false pretences.
Since 2020, crypto ATM scams have surged, with the FTC reporting a tenfold increase in consumer losses in the US. In the first half of 2024 alone, victims lost over $65 million, while FBI reports highlight $124.3 million in total losses from these scams in 2023. With 43% of crypto-related suspicious activity linked to crypto ATMs, their growing role in fraud is undeniable
Regulatory and Enforcement Efforts
In response, governments worldwide are ramping up crypto scam regulations. Several US states have introduced daily transaction limits and registration requirements for crypto ATMs, while international measures—such as Europe’s Markets in Crypto-Assets Regulation (MiCA)—are being enforced in regions including Germany, the UK, Türkiye, and APAC.
Collaboration between law enforcement, regulators, and private firms is proving essential in combatting crypto fraud. Efforts like Operation Spincaster demonstrate how coordinated initiatives can help disrupt illicit networks and protect victims.
The Future of Crypto Scams
As fraudsters continue to adapt, authorities must evolve their strategies to protect users and the financial system. The report underscores the persistence and adaptability of crypto scams, making real-time data, AI-driven fraud detection, and international cooperation crucial in the fight against financial crime.
Read the full report here.
