Crypto Scam Warning: $9 Billion Gone—And It’s Getting Worse

TL;DR

• FBI says crypto scams stole a mind-numbing $9.3 billion in 2024. “Pig butchering” is now the most popular scam. Yikes.

• Malware disguised as a “free” PDF converter is actually draining wallets left and right.

• The SEC just vaporized a $200M crypto Ponzi. Spoiler: there was no AI, just a lot of luxury spending.

FBI: Crypto Scammers Steal $9.3 Billion in 2024—Grandma, Hide Your Wallet

The FBI’s latest numbers are brutal.

In 2024, internet fraud hit $16.6 billion—and over half ($9.3B) was thanks to crypto scams. The big winner? “Pig butchering” schemes, where scammers wine, dine, and then bankrupt you, taking $5.8 billion alone.

Seniors (60+) are getting hit the hardest, losing a collective $2.8B. The crooks are using everything: AI chatbots, QR codes, crypto ATMs, and stablecoins like USDT and DAI.

Full story →

Don’t Download That PDF Converter—It’s a Crypto Drainer in Disguise

You ever need that “one quick PDF to DOCX” conversion? Turns out, that free converter could be Arechclient2 malware, aka a wallet-thieving monster.

It grabs your seed phrases, browser logins, and can even suck coins straight from your wallet via Web3 APIs. The scammers are slick, adding fake loading bars and CAPTCHAs to look legit.

How not to get wrecked: Use trusted, offline tools for conversions. Be suspicious of anything new and shiny—especially if it asks for extra permissions.

How it works →

$200 Million Crypto Ponzi: The SEC Brings the Hammer Down

Ramil Palafox, boss of PGI Global, promised wild returns via “AI-powered” trading. In reality, it was a $200 million Ponzi scheme.

He spent $57M on himself—think bling, cars, first-class everything—while shuffling cash between new and old investors. The SEC and DOJ have now charged him with everything short of being a Bond villain.

The takedown →

Bonus Round: Malware, Hackers, and Full-On Crime Syndicates

🐊 “Crocodilus” Malware Targets Android Crypto Wallets

If you’re rocking Android 13+, beware: new malware called Crocodilus is after your crypto. It uses fake wallet backup prompts to nab your seed phrase and can take over your device using accessibility permissions.
Pro tip: Don’t grant sketchy apps special access. Period.

Get the details →

🏭 Crime Syndicates Build Their Own Coins to Launder Billions

Think organized crime is old-school? Southeast Asian syndicates are running full-scale crypto empires—custom coins, exchanges, the works. One ring moved $24B through their own platform. They’re using AI, deepfakes, and romance scams to make it rain.
Reality check: If an offer sounds like a movie plot, it probably ends in tears.

How big is this? →

🎣 North Korean Hackers Nab $137M in a Single Day

The UNC3782 group from North Korea ripped TRON users for $137 million in one day. Their toolbox: fake job offers, investment scams, and malware-laced everything—all to fund weapons programs and dodge sanctions.
Simple rule: If someone offers you crypto wealth or a dream gig out of nowhere, double-check before you leap.

Phishing deep-dive →

Stay Smart, Stay Skeptical

Crypto’s not going anywhere. Neither are the scammers. If you spot a scam or just want to vent about another “too good to be true” pitch, reply to this email and let us know.
Forward this to a friend who thinks they’re too clever to get scammed (they’re not).

Until next time,
The Crypto Asset Recovery Team