“Pig Butchering” Scams Target Ethereum Investors, $3.6 Billion Stolen in 2024
Sohrab Khawas27 Dec 20242 min read
In 2024, Pig Butchering scams became one of the most alarming threats to crypto investors, with a staggering $3.6 billion in assets stolen. What makes these scams so dangerous? They’re deeply manipulative, targeting investors with carefully crafted relationships and promises of big returns.
A recent report from Cyvers, a Web3 security company, revealed that Ethereum blockchain users were hit the hardest, with over 150,000 wallet addresses affected across nearly 800,000 transactions.
Keep reading to uncover the shocking details.
What are Pig Butchering Scams?
Pig Butchering is a type of scam where criminals build fake but convincing relationships with their targets. They then trick victims into making large investments in fraudulent cryptocurrency platforms. Once the money is invested, the scammers vanish, leaving investors with nothing.
These scams have become more advanced, leading to a 40% increase in cyber threats in the crypto industry this year. This rise in targeted attacks shows the need for increased awareness and stronger security measures.
Access Control Breaches: A Key Factor
Access control breaches were another significant factor behind crypto fraud this year. According to the report, these breaches made up 81% of all crypto fraud cases. These incidents not only caused significant financial losses but also highlight the importance of improving protection against unauthorized access and transfers.
A separate report from Chainanalysis showed that digital currency theft rose to $2.2 billion in 2024, up from $1.8 billion in 2023. North Korean hackers were behind $1.34 billion of the thefts—more than double their total from 2023.
Exchanges Under Attack
2024 also saw a shift in focus from decentralized finance (DeFi) platforms to centralized exchanges. High-profile attacks included Japan’s DMM Bitcoin, which lost $305 million, and India’s WazirX, which was compromised for $234.9 million. Hackers used mixers and blockchain bridges to launder 90% of the stolen funds, while weak private key management allowed them to steal 43.8% of the money.
The rise in crypto scams and cyberattacks serves as both a warning and a reminder to stay alert. As cryptocurrencies grow in popularity, it’s crucial for investors to thoroughly check investment offers and stick to trusted service providers to keep their assets safe.
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