Scams

In 2025, Chainalysis reported that ransomware incidents climbed by about 50%, with attackers shifting their focus toward small and mid-sized businesses instead of major corporate targets. Nearly 8,000 leak events were logged, yet on-chain ransom payments fell to $820 million, down eight percent year-on-year. Analysts linked the falling payouts to stricter enforcement against laundering networks, cheaper dark‑web access, and AI‑driven tools that have boosted low‑cost but less profitable attack campaigns, while separate data showed crypto theft of $370.3 million in January 2026.

Chainalysis' annual report finds ransomware leak events climbed 50% in 2025 to nearly 8,000, while on-chain ransom payments slipped 8% to $820 million. The firm cites regulatory pressure, enforcement against laundering infrastructure, and more refusals to pay, prompting a pivot toward small and mid-sized targets.

TRM Labs reports that AI‑enabled crypto fraud activity rose about 500% over the past year, with generative tools accelerating phishing, identity theft, and laundering. Chainalysis says these operations earn 4.5 times more per scheme and generate 9 times more daily transactions than non‑AI scams. Recent incidents include large holder losses and U.S. seizures linked to pig‑butchering rings.

IoTeX committed to fully compensate users affected by the February 21 ioTube bridge exploit that drained $4.4 million, with payouts funded from treasury regardless of asset recovery. Mainnet operations resumed on February 24 following security upgrades, and a tiered claims process starts Friday, February 27. The patch blacklisted 29 attacker addresses and froze about 45 million IOTX.

On 25 February 2026, federal prosecutors in the Eastern District of North Carolina announced the seizure of more than $61 million in Tether (USDT) allegedly tied to a large-scale "pig butchering" cryptocurrency scam. The operation, led by Homeland Security Investigations in Raleigh, relied on blockchain tracing tools and cooperation from Tether, which froze suspect wallets and moved the funds to government-controlled accounts. Authorities indicated the assets are now in federal forfeiture proceedings amid a wider surge in AI-driven and social engineering-based crypto fraud losses.

On 25 February 2026, researchers reported an active malware campaign using fake Windows 11 upgrade ads on Facebook to compromise cryptocurrency users. The scheme redirects victims to Microsoft-style clone sites that deliver a malicious installer hiding the "LunarApplication" infostealer. Once executed, the malware targets wallet seed phrases, exchange credentials, and saved passwords while using geofencing and sandbox checks to evade security tools.

US federal agents in North Carolina have seized more than $61 million in USDT allegedly tied to a large pig butchering crypto investment scheme that used fake relationships and bogus trading platforms to target victims. Investigators tracked funds across multiple wallets before freezing addresses that still held significant balances, with Tether assisting in transferring the assets. The action comes amid a sharp rise in AI‑driven impersonation and social engineering scams, as crypto‑related fraud losses reportedly reached $17 billion in 2025.

In February 2026, Lime co-founder Brad Bao was named a defendant in a $100 million federal RICO lawsuit in the Northern District of California tied to the Cere Network token. The suit alleges a pump‑and‑dump scheme and improper fund transfers; plaintiffs seek compensatory and punitive damages, while all claims remain unproven in court.

On February 23, 2026, USD1, a stablecoin linked to Donald Trump, briefly fell to $0.9942 before returning to its $1.00 peg within a couple of hours, according to the report. The issuer, World Liberty Financial, said the volatility followed a coordinated attack. Fine print on the platform's site now indicates DT Marks DEFI LLC holds approximately 38% of WLF Holdco LLC.

Pig-butchering crypto scams cultivate long-term trust, then funnel victims into fake digital asset platforms. In January 2026, losses reached $370.3 million, with social engineering accounting for about $311 million. Authorities are pursuing networks and laundering operations, but cross-border structures and encrypted channels complicate enforcement.