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How Pig Butchering Scams Target Ethereum Investors and Steal Billions in 2024
In a shocking revelation, Pig Butchering scams have emerged as one of the most prevalent threats in the cryptocurrency market, targeting Ethereum investors and stealing billions in assets. According to a recent report by Cyvers, a Web3 security company, these sophisticated frauds have resulted in massive financial losses for unsuspecting investors.
The study highlights that Pig Butchering schemes have stolen an astonishing $3.6 billion from crypto investors this year alone, with the majority of these attacks targeting the Ethereum blockchain. In fact, the report reveals that 150,000 wallet addresses across 800,000 transactions were compromised by these scammers.
It is crucial to note that these Pig Butchering scams are not your typical crypto heists. Instead, they involve building close relationships with investors and convincing them to invest in fake cryptocurrency platforms. Once convinced, the fraudsters vanish, leaving the investors with nothing but financial losses.
The report also underscores the growing threat of digital currency theft, which rose to $2.2 billion in 2024 compared to $1.8 billion in 2023. Moreover, North Korean hackers were responsible for a staggering $1.34 billion worth of stolen funds, more than double their 2023 haul.
In addition to these alarming statistics, the report highlights the shift from decentralized finance (DeFi) systems to centralized applications as the preferred target for attackers. In fact, high-profile attacks on popular platforms such as Japan’s DMM Bitcoin ($305m) and India’s WazirX ($234.9m) underscore this trend.
It is essential that investors stay alert and thoroughly vet any investment opportunities before parting with their funds. Furthermore, the use of mixers and bridges between blockchains to redistribute stolen funds is a concerning development, with 90% of stolen assets being laundered through these channels.
The poor management of private keys by investors has also been identified as a significant risk factor, allowing fraudsters to steal a staggering 43.8% of stolen funds.
In conclusion, the findings of this report serve as a stark reminder that the cryptocurrency market is not immune to sophisticated frauds. As such, it is crucial for investors to prioritize due diligence and stay informed about the latest trends and threats in the industry.
Source: coinpedia.org
