Here’s the most profitable crypto scam, according to new report

Crypto scammers are evolving with the market, seeking new avenues for their crimes, with "pig butchering" reported as the most profitable scam this year.

Previously, Ponzi schemes were the primary focus for crypto criminals. However, in addition to "pig butchering," scams such as drainers, work-from-home schemes, and address poisoning are gaining popularity, according to the latest report by blockchain analysis company Chainalysis.

The report indicates that scammers are adapting their tactics, conducting shorter but more lucrative and regenerative campaigns. For instance, "pig butchering" scammers from Myanmar, KK Park, are said to have netted at least $101.22 million this year (this figure may also include ransom payments).

"Pig butchering" refers to a type of scam in which the victim is tricked, often through the creation of a "romantic" relationship, into making larger "investments" in a fraudulent scheme. These scammers frequently purchase profiles on platforms like Facebook, Tinder, and Match.com from China-based services.

Researchers have noted a surge in new scams this year, with 43% of scam inflows going to wallets that became active in 2024. In comparison, only 30% of total inflows went to newly active wallets in 2022.

Regarding the shorter duration of scam campaigns, data shows that between 2020 and 2024, the average number of days scams remained active decreased from 271 to 42 days. According to Chainalysis, this shift away from Ponzi schemes is also partly driven by increased enforcement efforts and stablecoin issuers blacklisting scam addresses.

Meanwhile, data from Immunefi indicates that losses in the crypto market due to criminal activity have dropped nearly 20-fold in August. This decline is attributed to the absence of very large hacks in August (so far), as the crypto exchange WazirX suffered a hack exceeding $230 million in July.