Cryptocurrency scammers are becoming increasingly sophisticated in their attempts to steal digital assets, blockchain analysis firm Chainalysis warns in a new report.
Fraud will account for the majority of the multi-billion dollar crypto crime sector in 2024, according to a report released Thursday. Although large in monetary terms, this amount is still relatively small. Less than 1% of on-chain value is related to illegal activity, said Eric Jardines, head of research at Chaineries.
Other illegal uses have also gained attention, such as the use of cryptocurrencies in child exploitation materials and other cybercrime tools. Fraud remains a big part of it.
Given the havoc that so-called pig butchering scams can bring to individuals, anyone with a cryptocurrency wallet should be careful. Pig butchers scammers “fatten up” their targets with romantic advances and other tactics that build trust before offering them bogus investment opportunities and stealing their funds.
But stealing money is only half the battle. Scammers need to get out of their shoes, and the most obvious outlet, centralized cryptocurrency exchanges, have gotten better over the years in stomping out illegal activities.
Enter Huione Warranty. It is an online marketplace controlled by a Cambodian conglomerate where anyone can post offers to buy or sell almost anything, including cryptocurrencies. The market acts only as an intermediary. Other than the movement of money, there is no regulation of who gets the money or where it comes from.
According to Chainalysis, since 2021, the platform has processed $49 billion in cryptocurrency transactions. The company said it believes at least some of this activity is connected to crypto criminals engaged in pig butchering and money laundering activities.
