Key Points:
- AI advancements and professional networks are driving a rise in crypto scams, with losses projected to exceed $12 billion.
- Cambodian firm Huione Guarantee is linked to cybercrime, facilitating money laundering and providing scam-related tools.
The prevalence of crypto scams is anticipated to surge in 2025, fueled by advancements in artificial intelligence and the expansion of professional scam networks, according to a report by blockchain analytics firm Chainalysis.
Read more: Chainalysis CEO Michael Gronager Resigns After 10 Years With Company
AI-Driven Crypto Scams on the Rise with Losses Topping $12 Billion
Generative AI is significantly enhancing the efficiency of fraudulent schemes by enabling cybercriminals to create synthetic identities, bypass security measures, and craft highly convincing scams.
Chainalysis noted that five types of crypto scams saw notable growth in 2024: pig butchering, address poisoning, crypto drainers, livestream fraud, and blackmail/sextortion scams.
In 2024, cryptocurrency-related fraud led to financial losses totalling approximately $9.9 billion, with projections indicating this figure could surpass $12 billion as additional fraudulent activities are uncovered.
The rising use of deepfakes and AI-driven deception is also expected to cause severe financial repercussions for the U.S. economy by 2027, as highlighted by Deloitte’s Center for Financial Services.
Huione Group’s Alleged Role in Crypto Crime
In addition, Chainalysis’s report mentioned Huione Group, a Cambodian conglomerate involved in financial services and luxury tourism. While the company provides legitimate offerings, its subsidiary, Huione Guarantee, has been linked to cybercrime.
Huione Guarantee serves as a hub for illicit actors. The platform has also supported money laundering networks, further solidifying its role in the expanding global scam ecosystem.
Since 2021, the online forum and peer-to-peer marketplace have processed $70 billion in crypto transactions, with evidence suggesting its extensive use in money laundering and scam facilitation.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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