Blockchain analysis company Chainalysis has released the second part of its mid-year crime update, which analyses the latest trends in crypto scams and tactics and on-chain activity related to child sexual abuse material (CSAM).
Key takeouts from the report include:
Scams
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Scammers for the most part continue to pivot away from broad-based ponzi schemes to more targeted campaigns like pig butchering, work from home scams, drainers, or address poisoning.
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One of the largest single wallets associated with scamming active this year consolidates funds from many scams operating out of Myanmar’s most notorious pig butchering compound, KK Park. Netting over USD100 million so far this year, funds could have come both from scam victims and from ransom payments submitted by families attempting to save their trafficked family members.
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Scam operations out of KK Park and similar compounds are prolific when it comes to adapting their off-chain scam presence, such as purchasing seasoned Facebook, Tinder, and Match.com profiles from China-based services for use in their campaigns.
CSAM networks
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Reportings of China-based CSAM sites have increased since late 2023.
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A majority of wallet holders are purchasing a month’s access or more, up to and including nearly permanent access of ~20,000 days (equivalent to more than 54 years).
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Consistent with Chainalysis’ past findings, CSAM vendors continue to leverage instant exchangers when cashing out.
Huione Guarantee
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Chainalysis is observing a rise in the use of Chinese-language marketplaces and laundering networks. One such marketplace is Huione Guarantee, tied to the Cambodian conglomerate Huione Group, which connects buyers and sellers who often do little to mask the illicit nature of their transactions.
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Huione Guarantee has processed more than USD49 billion in cryptocurrency transactions since 2021, significantly more than previously reported.
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Huione’s on-chain connections include pig butchering and other scams, addresses reported as stolen funds, the OFAC-sanctioned Russian exchange Garantex, fraud shops, CSAM, Chinese language gambling sites and casinos, and more.
