Blockchain analysis company Chainalysis states that fraudsters are using increasingly sophisticated methods to steal digital assets.

Scams will make up a large portion of the billion-dollar crypto crime industry of 2024, according to a new report from Chainalysis. However, this large sum covers less than 1% of the on-chain value.

Eric Jardines, research leader at Chainalysis, emphasizes that although this rate is a small percentage, scams and other illegal activities remain a significant problem of the crypto ecosystem.

The report states that other illegal uses, as well as scams, are increasing. Issues such as the use of cryptocurrencies in child abuse material and other cybercrime tools attract attention. However, scams continue to be the biggest problem in this area.

One of the scams that many people encounter is the so-called “pig slaughter” type. In these types of scams, victims are “inflated” with romantic interests and trust-building tactics and then defrauded with fake investment opportunities.

Scammers steal their victims’ money this way. These types of scams can cause serious financial harm to individuals and create great concern in society.

Stealing money is only half the battle for scammers. Fraudsters who steal money need to use various methods to remove the money they stole. Centralized crypto exchanges have taken significant steps to prevent such illegal activities. These exchanges have developed more effective methods to stop fraudsters’ transactions and prevent money laundering.

However, some platforms may experience difficulties in this process. Huione Guarantee is an online marketplace run by a Cambodia-based conglomerate. This marketplace offers a platform where anyone can bid to buy or sell almost anything – including cryptocurrency.

However, Huione Guarantee only acts as an intermediary and does not regulate who receives the money or where the money comes from.

According to Chainalysis, $49 billion worth of crypto transactions have been carried out on the Huione Guarantee platform since 2021. The Company believes that some of these transactions are linked to hog slaughter fraud and money laundering operations.

This reveals how complex and broad a problem illegal activities have become in the crypto world.

Crypto scams and other illegal activities raise serious concerns about the security and regulation of digital assets. Both individuals and regulators need to be more vigilant and take effective measures to protect themselves from such scams.