Pig butchering scams drained over $5.5 billion from crypto investors in 2024, according to a report by blockchain security firm Cyvers. The report revealed that these scams targeted 200,000 victims last year.
This type of fraud has now become one of the biggest threats to crypto investors and platforms, with losses far exceeding those from traditional hacking attacks.
What Are Pig Butchering Scams?
Pig butchering scams are a type of online fraud where scammers trick victims into willingly sending their crypto assets. Instead of stealing funds outright, scammers build trust over time, convincing victims to invest in fake opportunities.
The term “pig butchering” refers to how fraudsters “fatten up” their victims with promises of high returns before stealing their money. These scams often blend elements of Ponzi schemes, romance scams, and fake investment opportunities.
Unlike hacks, where funds are stolen directly, pig butchering scams involve social engineering. Victims believe they are making a legitimate investment until they realize their money is gone.
Ethereum Network Hit Hardest
The report found that the Ethereum network saw the most damage, with pig butchering scams costing investors over $5.5 billion in crypto. Among the ten most affected platforms, three of the five largest centralized exchanges (CEXs), a crypto-friendly bank, and an institutional trading platform suffered heavy losses.
Top ten most affected platforms of pig butchering scams. Source: CyversIn comparison, hacking attacks in 2024 caused $2.3 billion in losses across 165 incidents, a 40% increase from 2023, when hackers stole $1.69 billion. Despite this rise, pig butchering scams remain the biggest financial threat.
Scammers Target Victims Over Weeks or Months
One of the most dangerous aspects of pig butchering scams is the grooming process. Unlike quick hacks, scammers spend weeks or even months gaining victims’ trust before stealing their funds.
According to Cyvers, 35% of scams involve a grooming period of one to two weeks, while 10% last up to three months. During this time, scammers use fake social media profiles, chatbots, and AI-generated conversations to build relationships with victims.
Pig butchering victim stats, grooming time. Source: CyversOnce trust is established, victims are encouraged to make large deposits, believing they will earn high returns. But when they try to withdraw their money, they realize they have been scammed.
Who Are the Most Affected Victims Pig Butchering Scam?
The report revealed that men between the ages of 30 and 49 are the most common victims of pig butchering scams.
Worryingly, 75% of victims lost more than half of their net worth. Many people who fall for these scams are experienced investors who believe they are making a smart financial decision.
Pig butchering scams don’t just hurt individual investors. They also damage the reputation of crypto exchanges and platforms.
Deddy Lavid, co-founder and CEO of Cyvers, warned that major exchanges are losing millions of dollars due to these scams. Many platforms are struggling to maintain banking relationships and are facing increased regulatory scrutiny.
Governments and crypto companies are working to fight back. Authorities are enforcing stricter regulations, while industry players are developing new security measures to prevent scams.
Record-Breaking Losses in December 2024
December 2024 was the worst month for pig butchering scams, with over $468 million stolen. This was even higher than November, which saw $424 million in losses.
Pig butchering scams by month. Source: Cyvers
The post Crypto Investors Lose $5.5 Billion to Pig Butchering Scams in 2024 appeared first on Coinchapter.
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