Cryptocurrency Fraud & Pig Butchering Scams
Protecting Investors from the Growing Threat of Online Crypto Scams
Cryptocurrency has opened new doors for innovation, but it’s also created new opportunities for scammers. One of the fastest-growing threats is a sophisticated type of fraud known as pig butchering. Victims of these scams often lose hundreds of thousands of dollars—and many are left with nothing.
At Riley & Jackson, P.C., our team helps victims of cryptocurrency fraud take swift, strategic legal action. If you’ve been targeted by a crypto scam, it’s critical to act fast. With the right tools and legal support, there are ways to trace stolen funds and potentially recover your assets.
What Is Pig Butchering?
Pig butchering is a long-con investment scam, usually run by organized crime syndicates. The term comes from the Chinese phrase “sha zhu pan,” which loosely translates to “slaughtering the pig.” In this context, the “pig” is the unsuspecting victim who is “fattened up” over time—groomed to invest more and more money—before being “butchered” when the scammer disappears with their entire crypto investment.
These scams are particularly dangerous because they combine romance fraud, investment fraud, and psychological manipulation. Victims are often unaware they’ve been scammed until it’s too late.
How the Scam Works
Pig butchering scams follow a consistent pattern:
- Unsolicited Contact
The scam begins with a message via text, social media, or dating apps. The scammer may pretend they mistyped a number, or initiate friendly conversation on a post. - Emotional Manipulation
Over time, the scammer builds trust by pretending to be a friend, mentor, or love interest. They share personal details and encourage the victim to do the same. - Introducing the “Opportunity”
Once trust is established, the scammer introduces an investment strategy—usually involving cryptocurrency trading or “exclusive” contract trading groups. - Fake Platforms & Portfolios
Victims are guided to fraudulent websites that mimic real crypto exchanges. These platforms show fake profits and allow small initial withdrawals to build trust. - The Ask for More
As confidence grows, victims are encouraged to invest larger amounts. Scammers may even offer to “match” investments or claim huge returns are just around the corner. - The Butchering
Eventually, victims are told they must pay taxes, fees, or unlock their funds—always requiring more crypto. If the victim resists or questions the process, the scammer may disappear or block access entirely.
Other Common Cryptocurrency Scams
Pig butchering is just one of many cryptocurrency fraud schemes. Others include:
- Impersonation Scams: Scammers pose as IRS agents, tech support, or law enforcement and demand crypto payment.
- Ponzi Schemes: Fraudsters use funds from new investors to pay earlier investors—until the whole scheme collapses.
- Pump-and-Dump Scams: Scammers artificially inflate the value of a cryptocurrency and then sell off their holdings.
- Rug Pulls: Developers launch a fake crypto project, accept investor funds, and disappear—leaving tokens worthless.
Each of these scams exploits the decentralized and anonymous nature of cryptocurrency to avoid detection and regulation.
Warning Signs of Pig Butchering Scams
Recognizing red flags early can prevent financial disaster. Common warning signs include:
- Unsolicited messages from strangers
Especially those who quickly ask to move the conversation to WhatsApp or Signal. - Love bombing or excessive flattery
New “friends” or love interests who quickly express deep emotional connections. - Too-good-to-be-true investment promises
Guaranteed high returns, fake screenshots of profits, or promises to match your investment. - Urgent, limited-time opportunities
Pressure to act fast so you “don’t miss out.” - Requests for crypto payments
No legitimate business, government agency, or job offer will ask you to send cryptocurrency upfront.
Emotional & Financial Toll on Cryptocurrency Fraud Victims
Pig butchering scams don’t just drain bank accounts—they leave lasting emotional scars.
Victims often suffer:
- Loss of retirement savings, college funds, or entire life savings
- Emotional trauma from betrayal and manipulation
- Anxiety, depression, shame, and social withdrawal
- Long-term health impacts like insomnia and elevated blood pressure
Many victims feel isolated or too embarrassed to come forward. But you’re not alone—and legal help is available.
The Global Networks Behind These Scams
Many pig butchering scams are operated by international crime syndicates, primarily in Southeast Asia. These operations often use human trafficking victims as the “frontline workers,” forcing them to run scams under threat of violence or imprisonment.
Victims of trafficking are promised legitimate jobs, only to have their passports seized and be held in compounds where they work long hours to deceive unsuspecting investors online. These operations generate billions in stolen cryptocurrency every year.
How Stolen Cryptocurrency Is Laundered
Once scammers collect your funds, they quickly move the crypto through a complex web of wallets and exchanges to hide its origin. Techniques include:
- Smurfing: Breaking large amounts into many smaller transactions
- Mixing: Combining stolen crypto with legitimate assets to obscure the source
- Exchange Hopping: Rapid transfers across platforms and borders
- Layering: Complex movement between wallets to confuse investigators
This is why immediate action is critical. The sooner you act, the more likely it is to trace and recover the funds before they’re lost for good.
Types of Damages in a Cryptocurrency Fraud Case
If you’ve been defrauded, you may be entitled to:
- Restitution of stolen funds
- Injunctive relief (e.g., freezing scammer wallets)
- Emotional distress damages (in certain cases)
- Attorney’s fees and legal costs
- Potential punitive damages in civil lawsuits
How a Cryptocurrency Fraud Lawyer Can Help
Our legal team helps clients:
✅ Report the Fraud
We assist in filing reports with your bank, local law enforcement, and the FBI’s Internet Crime Complaint Center (IC3).
✅ Conduct Blockchain Analysis
We work with blockchain experts to trace stolen funds across the blockchain.
✅ Send Legal Notices to Exchanges
Our team drafts Know Your Customer (KYC) and Anti-Money Laundering (AML) letters to notify exchanges and request wallet freezes.
✅ Pursue Legal Action
We may seek injunctions, temporary restraining orders, or civil claims—sometimes serving scammers via NFTs when necessary.
✅ Provide Emotional & Strategic Support
We know how devastating these scams can be. We’ll guide you through the legal process with empathy and expertise.
Don’t Wait — Time Is Critical
If you believe you’ve been targeted by a pig butchering or cryptocurrency scam, don’t delay. Quick action improves your chances of recovery. Cryptocurrency scams are complex, but with the right legal team, it is possible to fight back.
Contact Riley & Jackson, P.C., today for a free consultation. We’ll review your case, help you understand your options, and stand with you every step of the way.