Chainalysis warns of new crypto scams

Crypto scams remain the biggest problem on the market, according to a report by the analysis company. Now Chainalysis is warning of a new tactic.

The well-known analysis company Chainalysis warns in a new report that crypto scam is becoming increasingly sophisticated to rob investors of their assets.

According to the analysis, crypto scams continue to account for the largest share of criminal activity in the crypto sector. Yet less than 1% of on-chain value is related to illegal activities.

However, they did point out that other illegal uses, such as the use of cryptocurrencies for materials related to child exploitation and Internet crime in general, have increased.

So-called "Pig Butchering Scams" can cause particularly great harm to individuals. In these, the scammers "fatten" their victims with romantic advances or other tactics to build trust.

After these rapprochement attempts, the scammers peddle a false investment strategy to investors to steal their assets.

Centralized crypto exchanges are getting better at reducing opportunities for these individuals to withdraw after crypto scams. However, this is coupled with tighter controls for ordinary users, which can reduce usability.

Chainalysis cites the online marketplace Huione Guarantee as a prominent example of a platform where crypto scams seem to be normal. Since 2021, the platform, owned by a Cambodian conglomerate, has processed transactions worth $49 million.