In the realm of cryptocurrencies, scams have transcended isolated incidents and have become a widespread issue. The latest report by blockchain analysis firm Chainalysis reveals that the global crypto scam market now commands an annual volume of at least $14 billion. This figure is anticipated to rise to $17 billion by 2025 as new traces of illegal funds are discovered.
AI’s Role in Amplifying Crypto Scams
Experts attribute this significant surge, in large part, to the use of artificial intelligence (AI). Chainalysis’ analyses show that scammers are actively utilizing AI tools to produce fake identities, deepfake videos, and automated social engineering scenarios. On average, scam groups leveraging AI generate $3.2 million from a single operation, compared to $719,000 accumulated by non-AI-using groups, indicating a 4.5-fold increase in fraud revenues through AI.
Pig Butchering: A Predominant Trap
These numbers are no surprise to officials. Recently, the scam technique known as “pig butchering” has positioned itself at the core of crypto crimes. Victims are directed to fake crypto investment platforms via social media platforms, where they invest their savings only to find themselves completely cut off from the system.
U.S. federal agencies have resorted to court interventions to reclaim billions of dollars swindled through this method just last year. These fraud networks operate extensively across various platforms, including LinkedIn, Instagram, and dating and messaging services.
Social Media Platforms as Scam Hotspots
In 2025, Forbes documented numerous pig butchering cases occurring not only on dating apps like Tinder, Hinge, and eHarmony but also on social media platforms like TikTok, WhatsApp, Facebook, and X. Reports indicate that these scams have resulted in losses amounting to hundreds of millions of dollars.
A newly opened FBI investigation in San Diego uncovered that a woman was persuaded to invest $730,000 by a person introducing themselves as “Jack Zhang” on eHarmony. When her supposed balance exceeded $1 million on the fake platform, she encountered demands for an additional $128,000 fee upon attempting to withdraw, at which point she discerned the scam.
According to the same case file, the same scam network targeted another woman through LinkedIn, leading her to deplete her $1.3 million retirement savings. It was noted that she later succumbed to cancer, leaving her spouse struggling with early withdrawal penalties.
The Evolution of Crypto Crimes and Large-Scale Operations
Crypto scams have recently become a primary concern for global security agencies. In 2023 and 2024, UK police seized 61,000 Bitcoins in one of history’s largest operations, valued at approximately $5.5 billion at the time. The U.S. Department of Justice also announced the recovery of $15 billion in crypto assets associated with large-scale pig butchering networks during the same period. These operations illustrate how advancements in blockchain analysis tools are diminishing criminals’ ability to “disappear without a trace.”
Tracking and Recovery Offer Optimism
Despite a seemingly bleak outlook, there is a silver lining: the extent of crypto scams is becoming more measurable. Through advanced tracking technologies, Chainalysis and law enforcement agencies can trace stolen funds and recover a significant portion.
Nonetheless, the pressing question, experts contend, is how swiftly individual users and platforms can take preemptive measures when AI tools in the hands of scammers prove so effective. In the crypto sphere, security is being redefined not just as a technological issue but also a matter of awareness and regulation.
