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Pig butchering scams are the biggest threat for retail crypto investors and crypto platforms in 2025, according to Cyvers.
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Pig butchering scams have emerged as one of the most pervasive threats to cryptocurrency investors, with losses in the billions of dollars across 200,000 identified cases in 2024, according to a report from onchain security firm Cyvers, shared exclusively with Cointelegraph.
Pig butchering is a type of phishing scheme that involves prolonged and complex manipulation tactics to trick investors into willingly sending their assets to fraudulent crypto addresses.
Pig butchering schemes on the Ethereum network cost the industry over $5.5 billion across 200,000 identified cases in 2024, according to the report.
Among the top 10 most affected platforms, Cyvers identified three of the five largest centralized exchanges (CEXs), a crypto-friendly bank and an institutional trading platform.
Pig butchering losses by platforms. Source: Cyvers
The industry is still recovering from 2024, when crypto hackers stole over $2.3 billion worth of digital assets across 165 incidents, a 40% increase over 2023, when losses totaled $1.69 billion.
Pig butchering schemes are “by far the biggest threat,” even compared to crypto hacks, according to Michael Pearl, vice president of GTM strategy at Cyvers.
“Even though, it’s important to highlight that, unlike hacks, it’s very hard to draw the line between pig butchering and investment scams. Ponzi, romance, it’s often a mix of all,” Pearl said.
“What makes it a pig butchering scheme is the grooming element,” he added.
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Average victim “grooming time” takes over two weeks
Since pig butchering schemes are a subset of phishing schemes, attackers must trick users into willingly sending their assets, unlike with hacks.
The average grooming period for victims lasts between one and two weeks in 35% of cases, while 10% of scams involve grooming periods of up to three months, according to Cyvers data.
Pig butchering victim stats, grooming time. Source: Cyvers
In an alarming sign, 75% of victims lost over half of their net worth to pig butchering scams. Males aged 30 to 49 are most affected by these attacks.
The proliferation of generative artificial intelligence and AI-based social media chatbots is also helping scammers scale their attacks.
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Still, the impact of pig butchering schemes extends beyond just retail investors, according to Deddy Lavid, co-founder and CEO of Cyvers:
“Crypto platforms — especially centralized exchanges — are hemorrhaging millions, grappling with reputational crises, struggling to maintain banking relationships and increasingly facing regulatory scrutiny.”
“Efforts to combat this phenomenon are underway, ranging from industry-led initiatives to government-driven regulatory actions and enforcement efforts,” he added.
Pig butchering scams by month. Source: Cyvers
December 2024 was the biggest month for pig butchering schemes, costing the industry over $468 million, overtaking November’s $424 million.
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This article first appeared at Cointelegraph.com News
