Key Points
- Pig butchering scams remain highly lucrative in the crypto space, with one Myanmar-based operation netting over $101 million so far this year. This highlights the shift from broad-based Ponzi schemes to more targeted scamming tactics.
- Huione Guarantee, a Chinese-language marketplace, has processed over $49 billion in cryptocurrency transactions since 2021, facilitating various illicit activities, including scams, money laundering, and connections to sanctioned entities.
Scammers Adapt Tactics, Pig Butchering Dominates
According to a recent report by blockchain analytics firm Chainalysis, the cryptocurrency scam landscape has evolved significantly in 2024. Scammers are adapting their on-chain and off-chain tactics, trending towards shorter but more dynamic and lucrative campaigns. The report reveals that 43% of year-to-date scam inflows have gone to wallets that became active this year, suggesting a surge in new scams.
Pig butchering scams, where scammers build relationships with victims before pushing them into fake crypto investment schemes, remain the most significant revenue-generating scam type. One Myanmar-based operation linked to the notorious KK Park compound has netted at least $101.22 million in cryptocurrency this year. This highlights the shift away from elaborate crypto Ponzi schemes towards more targeted campaigns.
The average lifespan of crypto scams has decreased significantly, from 271 days for scams that began in 2020 to 42 days for those starting in 2024. This trend is consistent with scammers pivoting from elaborate Ponzi schemes to more targeted campaigns like pig butchering or address poisoning, partly driven by increasing enforcement efforts and stablecoin issuers blacklisting scam addresses.
Huione Guarantee: A $49 Billion Illicit Crypto Marketplace
The report also exposes Huione Guarantee, a Chinese language marketplace tied to the Cambodian conglomerate Huione Group. This platform has processed over $49 billion in cryptocurrency transactions since 2021, significantly more than previously reported. Chainalysis found that Huione Guarantee has on-chain connections to various illicit activities in the crypto space, including pig butchering scams, addresses reported as stolen funds, the OFAC-sanctioned Russian exchange Garantex, fraud shops, and gambling sites.
Huione Guarantee is a peer-to-peer platform that connects crypto buyers and sellers often engaged in illicit activities. The marketplace is active on the Ethereum and TRON blockchains, with over $1.9 billion in total inflows on Ethereum and over $47 billion on TRON. Many merchants on the platform make little effort to mask their intentions, advertising services related to crypto money laundering, orchestrating pig butchering schemes, and facilitating Ponzi schemes.
The platform has also processed transactions involving wallets reportedly associated with larger crime syndicates, including KK Park and entities operated by the Kokang families in Myanmar. These connections showcase that Huione Guarantee has facilitated activity not just with individual scammers and fraudsters but with broader criminally affiliated networks in the crypto space.
As cryptocurrency-related crime evolves, blockchain intelligence firms and law enforcement agencies face ongoing challenges combating these illicit activities. The report underscores the need for continued vigilance and cooperation among stakeholders to address these emerging threats in the cryptocurrency ecosystem. The adaptability of scammers and the rise of large-scale illicit marketplaces highlight the persistent challenges in maintaining the integrity and security of the crypto space.
