Pig butchering scams: how fake crypto investment romances work

A pig butchering scam is a fake investment relationship: someone befriends you online, earns your trust over days or weeks, then guides you onto a crypto “trading platform” that the scammers control. The profits you see are invented, and the money you deposit is gone.

How big is the problem

This is the costliest form of fraud the FBI tracks. The 2025 IC3 Annual Report recorded about $7.28 billion in reported losses from investment fraud involving crypto, across 61,559 complaints. People 60 and older reported about $2.76 billion of those losses.

FinCEN's September 2026 alert notes that reported US losses to these digital asset investment scams rose from $907 million in 2021 to $7.2 billion in 2025. Chainalysis also reported a record $15 billion seizure linked to the Prince Group, a criminal organization tied to scam compounds, in its 2026 Crypto Crime Report.

How the scam works

1. The hook. A “wrong number” text, a dating app match, a social media message or an invitation to an investing group. The FTC says nearly 60% of people who reported romance scam losses in 2025 said contact began on social media.
2. Building trust. Daily friendly chats, photos of a glamorous life, shared hopes and problems. The scammer often moves the conversation to WhatsApp, Telegram or another encrypted app.
3. The opportunity. They mention, casually, that an uncle or mentor taught them a crypto trading strategy. They offer to show you.
4. The fake platform. You buy crypto on a real exchange, then send it to a website or app they recommend. It looks professional and shows your balance growing quickly.
5. The squeeze. A small test withdrawal may work. Then come “VIP tiers,” loans and pressure to add more, sometimes from savings, retirement accounts or home equity.
6. The exit. When you try to withdraw a large amount, you are told to pay taxes, fees or a “security deposit” first. Pay, and there is always another fee. Eventually the contact disappears.

Warning signs

The FBI's Operation Level Up page lists signs that closely match what investigators see in case after case. Watch for:

• Someone you met online or through an unexpected text brings up an investment opportunity.
• They want to move to an encrypted messaging app.
• Promises of high returns and pressure to invest quickly.
• Encouragement to keep it from your family or financial advisor.
• Trouble withdrawing, or surprise fees and taxes before you can withdraw.
• They refuse or keep postponing live video calls and in-person meetings.
• The platform can only be reached through their link and is not a registered, well-known exchange.

Who is behind these scams

The FBI says these schemes are largely run by organized crime groups operating scam compounds, originally in Southeast Asia and now also reported in the Middle East, Africa and South America. Many of the people typing the messages were trafficked and forced to work. That is part of why the scripts are so polished: they are run like call centers, with playbooks and quotas.

It also means the person you are talking to is very unlikely to be who they claim. Photos are usually stolen, and AI tools increasingly help scammers write fluent messages and fake video.

If you think you are involved in one

1. Stop sending money, including any fee to unlock a withdrawal.
2. Do not confront the scammer or warn them you are reporting. Save the chats, profile names, phone numbers, website addresses and every transaction ID and wallet address.
3. Report to the FBI at ic3.gov and to the FTC at ReportFraud.ftc.gov. Also tell the exchange you used to buy the crypto.
4. Talk to someone you trust. Shame keeps people paying. The FBI says 77% of the people it notified through Operation Level Up did not realize they were being scammed, so you are far from alone.
5. Get support. If you are 60 or older, the DOJ Elder Justice Hotline (1-833-FRAUD-11) can help you file. If you feel overwhelmed or unsafe, call or text 988 to reach the Suicide and Crisis Lifeline.

For the bigger picture on scams and safety, return to our security and scams hub.

Updated October 4, 2026 by The Crypto Guide editorial team. Educational content, not financial, legal or tax advice. Spot an error? Request a correction.