Cryptocurrency criminals have shifted their focus from complex Ponzi schemes to more targeted scams, such as ‘pig butchering’. This is according to a report by Chainalysis, as reported by The Block.
‘Pig butchering’ involves luring victims into purchasing supposedly promising digital assets. The perpetrator gains trust through social engineering and then steals the investor’s funds.
Analysts highlighted KK Park in Myanmar, which has become a ‘notorious hub for internet fraud and human trafficking’. It is also linked to one of the largest crypto wallets associated with ‘pig butchering’.
‘The KK Park wallet was first observed on-chain in 2022. Fraudulent operations using this address continue to generate significant revenue, exceeding $100 million this year. These funds may have come from scam victims or as ransom from families trying to rescue their relatives who have fallen victim to human trafficking,’ the report states.
In August, Chainalysis reported that in the first half of the year, criminals stole nearly $1.6 billion in cryptocurrencies, shifting focus from DeFi to centralized digital asset exchanges.
According to Immunefi estimates, since the beginning of 2024, the crypto industry has lost over $1.2 billion due to hacks and fraud.