Chainalysis Report Reveals Surge in China-Based CSAM Networks and Crypto Scams in 2024

According
to
Chainalysis’
latest
mid-year
update,
2024
has
witnessed
a
significant
uptick
in
China-based
networks
dealing
in
Child
Sexual
Abuse
Material
(CSAM)
and
an
evolution
in
crypto
scam
tactics,
notably
the
infamous
pig
butchering
schemes.

Key
Findings

Chainalysis’
report
highlights
several
concerning
trends
in
the
realm
of
crypto
crimes.
The
update
delves
into
the
on-chain
activities
surrounding
CSAM
and
the
latest
scam
trends
dominating
the
crypto
landscape.

China-Based
CSAM
Networks

Chainalysis
reports
a
notable
increase
in
China-based
CSAM
sites
since
late
2023.
These
vendors
are
attracting
a
significant
portion
of
global
CSAM-related
inflows,
peaking
at
38.8%
in
Q1
2024.
Many
wallet
holders
are
purchasing
long-term
access
to
these
illegal
services,
with
some
transactions
indicating
nearly
permanent
access.

The
Internet
Watch
Foundation
(IWF)
has
noted
the
difficulty
in
determining
the
exact
reasons
behind
this
surge.
A
spokesperson
mentioned
that
the
rise
could
either
be
due
to
an
increase
in
reporting
or
the
emergence
of
new
networks.

Scam
Trends

Crypto
scams
have
also
evolved,
with
scammers
adopting
more
dynamic
and
lucrative
tactics.
The
report
identifies
pig
butchering
as
the
most
profitable
scam
type
year-to-date
(YTD).
One
Myanmar-based
scam
operation
has
netted
at
least
$101.22
million
so
far
in
2024.

Pig
butchering
scams
involve
scammers
building
a
fake
romantic
relationship
with
their
victims
to
extract
money
for
supposed
investment
opportunities.
These
scams
are
often
run
by
individuals
who
have
been
trafficked
and
forced
to
work
in
labor
camps
in
Southeast
Asia.

Additionally,
scammers
are
shifting
from
broad-based
Ponzi
schemes
to
more
targeted
campaigns,
including
work-from-home
scams
and
address
poisoning.

Huione
Guarantee
and
Laundering
Networks

Huione
Guarantee,
a
marketplace
linked
to
the
Cambodian
conglomerate
Huione
Group,
has
been
exposed
as
a
major
player
in
facilitating
cybercrimes.
The
platform
has
processed
over
$49
billion
in
cryptocurrency
transactions
since
2021,
far
exceeding
previous
reports.

Huione
Guarantee
operates
as
a
peer-to-peer
(P2P)
marketplace
that
connects
buyers
and
sellers,
often
through
Telegram
handles.
Many
transactions
on
the
platform
involve
illicit
activities,
including
pig
butchering,
investment
fraud,
and
money
laundering.

The
on-chain
analysis
reveals
that
Huione
Pay
has
been
active
on
Ethereum
and
TRON,
with
significant
inflows.
The
platform’s
connections
include
scams,
addresses
reported
for
stolen
funds,
and
entities
sanctioned
by
the
Office
of
Foreign
Assets
Control
(OFAC),
among
others.

Chainalysis’
report
underscores
the
expansive
network
that
Huione
facilitates,
linking
it
to
larger
crime
syndicates
and
various
illicit
activities.

For
more
detailed
insights,
the
full
report
can
be
accessed
on

Chainalysis.

Image
source:
Shutterstock