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Investment Fraud Global 2023

The "Pig Butchering" Crypto Investment Scam

How organised crime rings build fake relationships to lure victims into fraudulent cryptocurrency investments.

$3.31 billion in investment fraud ($2.57 billion crypto-specific)Total Losses
Tens of thousands globallyVictims Affected
FBI IC3 2022 Annual ReportSource

Timeline: How It Unfolded

Initial contact

Victims receive a "wrong number" text, a LinkedIn message, or a dating app match from an attractive, successful-looking person.

Weeks 1-3

The scammer builds a friendship or romantic connection. They casually mention their success with cryptocurrency investing.

Weeks 3-5

The scammer shows screenshots of their impressive crypto gains and offers to teach the victim. They recommend a specific "trading platform" (actually a fake website controlled by the scammers).

First investment

The victim invests a small amount ($500-$1,000). The fake platform shows impressive returns. The victim can even withdraw a small amount to "prove" it works.

Escalation

Encouraged by the returns, the victim invests more — often $10,000 to $100,000+. The fake platform continues to show growing returns.

The slaughter

When the victim tries to withdraw their full balance, the platform demands "taxes," "fees," or "deposits" to unlock the funds. The money is gone.

How the Scam Worked

  • The name "pig butchering" (from Chinese: 杀猪盘) refers to fattening a pig before slaughter — building trust and investment before stealing everything.
  • Many scammers are themselves victims of human trafficking, forced to work in scam compounds in Southeast Asia.
  • The fake trading platforms are sophisticated — they show real-time price data and generate convincing fake trade histories.
  • Small early withdrawals build confidence. The real theft happens when the victim has invested their maximum amount.
  • Victims are encouraged to borrow money, take out loans, or drain retirement accounts to "invest" more.

Red Flags That Were Missed

The initial contact was unsolicited — a "wrong number" text or cold approach
An attractive stranger was unusually interested in becoming friends and discussing finance
The recommended trading platform wasn't a recognised, regulated exchange
Returns were consistently high with no losses — real investments always fluctuate
The platform demanded fees to withdraw funds — legitimate platforms deduct fees automatically

What You Should Learn From This

Be suspicious of anyone you meet online who steers the conversation toward investing, especially cryptocurrency.
No legitimate investment guarantees returns. Consistent high returns with no losses are the hallmark of a scam.
Only use well-known, regulated trading platforms (Coinbase, Kraken, etc.). If you can't find the platform on financial regulatory databases, don't use it.
If you need to pay "fees" or "taxes" to withdraw your own money, the platform is fake.
"Wrong number" texts from attractive strangers are a common scam entry point — don't engage.
If it seems too good to be true, it is. Always.

Outcome

According to the FBI's IC3 2022 report, investment fraud losses totalled $3.31 billion — with cryptocurrency investment fraud accounting for $2.57 billion, a 183% increase from 2021. International law enforcement operations have raided scam compounds in Cambodia, Myanmar, and Laos, rescuing trafficking victims forced to work as scammers. Recovery of funds remains extremely rare.