Pig Butchering Scam

Pig butchering scams have emerged as one of the most devastating cryptocurrency fraud schemes of 2024 and 2025, costing Americans at least $10 billion in losses—a 66% increase from the prior year, according to U.S. government estimates. These elaborate schemes combine romance fraud with fake cryptocurrency investment platforms, leaving victims emotionally devastated and financially ruined.

If you’ve been targeted by a pig butchering scam, you need experienced legal representation that understands both securities fraud and cryptocurrency transactions. Varnavides Law, PC represents victims of investment fraud, including those who have lost money to sophisticated crypto scams.

What Is a Pig Butchering Scam?

A pig butchering scam is a type of cryptocurrency investment fraud where criminals build trust with victims over an extended period—often through romantic relationships or friendships—before convincing them to invest increasing amounts of money into fraudulent cryptocurrency trading platforms. The term “pig butchering” comes from the practice of “fattening up” the victim with fake relationships and simulated investment gains before ultimately stealing all their funds in the final “slaughter.”

According to the Commodity Futures Trading Commission, these scams reportedly cost Americans billions annually. The FBI reports that investment scams accounted for $5.8 billion in losses in 2024, with many employing pig butchering tactics.

Unlike traditional investment fraud that might occur through a single misleading pitch, pig butchering scams are characterized by:

• Long-term relationship building: Scammers invest weeks or months cultivating trust before mentioning investments
• Sophisticated fake platforms: Fraudulent apps and websites that mimic legitimate cryptocurrency exchanges
• Manufactured success: Victims see fabricated account balances and “profits” designed to encourage larger deposits
• Psychological manipulation: Combination of romantic interest, friendship, and financial advice creates powerful emotional bonds
• Organized crime operations: Many scams are run by criminal syndicates operating from Southeast Asia, often using trafficked workers

The sophistication of these operations has increased dramatically in 2024 and 2025, with scammers increasingly using AI-generated content, deepfake videos, and professional-looking trading interfaces that fool even financially savvy individuals.

How Pig Butchering Scams Work: The Six-Stage Process

Understanding how these scams operate can help victims recognize when they’ve been targeted and take swift legal action. Pig butchering schemes typically follow a predictable pattern:

Real-World Example of the Scam Progression

A typical pig butchering scam might unfold as follows: A professional receives a text message that appears to be sent to the wrong number. Rather than simply ignoring it, they politely respond. The sender apologizes for the mistake but continues the conversation in a friendly manner. Over several weeks, they exchange messages about their lives, interests, and work.

Eventually, the scammer mentions their success with cryptocurrency investments, often claiming to have inside knowledge from a family member who works in finance or technology. They offer to help the victim learn about crypto trading, framing it as a way to achieve financial independence. The victim is directed to what appears to be a sophisticated trading platform with professional branding, security features, and real-time price charts.

After making an initial deposit—perhaps $5,000 or $10,000—the victim sees their account balance grow. The platform shows profits of 20%, 30%, or even 50% within days. The scammer encourages them to add more funds to maximize returns. The victim might even successfully withdraw a small amount to verify the platform works, which is actually the scammer’s money used to build confidence.

Over time, the victim deposits $50,000, $100,000, or more. When they attempt to withdraw their funds, the platform suddenly requires payment of “taxes,” “verification fees,” or “upgrade charges.” The victim pays these additional amounts, only to face more demands. Eventually, the scammer stops responding, the website disappears, and the victim realizes all their money is gone.

FBI Reports on Pig Butchering Scam Losses

The Federal Bureau of Investigation has identified pig butchering scams as one of the most serious financial fraud threats facing Americans. According to the FBI’s Operation Level Up initiative, which began in January 2024, the agency has taken unprecedented steps to combat these schemes.

2024 Statistics from FBI Internet Crime Complaint Center

The FBI’s IC3 report revealed staggering losses from cryptocurrency fraud in 2024:

• Nearly 150,000 complaints involved the use of digital assets
• $9.3 billion in losses related to digital asset fraud—a 66% increase from 2023
• $5.8 billion specifically attributed to investment scams, many using pig butchering tactics
• $2.8 billion in losses reported by individuals aged 60 and older from crypto-related scams

Growth of Pig Butchering Operations

Data from blockchain analysis firm Chainalysis demonstrates the explosive growth of pig butchering scams:

• Revenue from pig butchering schemes grew nearly 40% year-over-year in 2024
• The number of deposits to pig butchering scam addresses increased by 210% year-over-year
• Total pig butchering revenue reached at least $9.9 billion in 2024
• These scams now account for approximately 33% of all cryptocurrency fraud

Who Is Being Targeted?

While anyone can fall victim to a pig butchering scam, certain demographics have been disproportionately affected:

• Older Americans: Those aged 60 and above reported $2.8 billion in crypto-related losses, often representing their entire retirement savings
• Professionals and educated individuals: Scammers specifically target people with savings and investment capacity
• Those seeking relationships: People using dating apps or open to new social connections are particularly vulnerable
• Cryptocurrency newcomers: Individuals curious about crypto but lacking technical knowledge are easily manipulated

The FBI emphasizes that these scams can fool anyone. The sophistication of the operations, combined with the emotional manipulation tactics employed, means that intelligence, education, or financial experience do not necessarily protect against victimization.

SEC and CFTC Enforcement Actions Against Pig Butchering Schemes

Federal regulatory agencies have ramped up enforcement efforts against pig butchering operations, recognizing the threat these scams pose to investors and market integrity.

SEC’s First Pig Butchering Cases (2024-2025)

In September 2024, the Securities and Exchange Commission filed its first-ever enforcement actions specifically targeting pig butchering scams. These groundbreaking cases involved three individuals and five companies allegedly operating fraudulent cryptocurrency platforms designed to steal investor funds through romance scam tactics.

More recently, in December 2025, the SEC charged three purported crypto asset trading platforms—Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc.—along with four investment clubs with defrauding retail investors out of more than $14 million.

According to the SEC’s complaint, from January 2024 to January 2025, these entities operated investment clubs primarily using WhatsApp. They solicited investors through social media advertisements, luring them with AI-generated investment tips and advice before directing them to open accounts on the fraudulent trading platforms. Once victims deposited funds, they were unable to withdraw their money.

CFTC’s Fraud Disruption Conference

The Commodity Futures Trading Commission has also taken aggressive action against pig butchering operations. In July 2024, the CFTC convened the first-ever Fraud Disruption Conference in partnership with the Department of Justice’s National Cryptocurrency Enforcement Team.

This historic conference brought together over 300 federal regulators and law enforcement officials from more than 15 agencies, including the FBI, SEC, U.S. Secret Service, and DEA. The interagency collaboration focused on three key strategies:

• Preventing victimization through coordinated public awareness campaigns
• Using technology to disrupt fraud through blockchain forensics and platform takedowns
• Enhancing enforcement collaboration to pursue criminal and civil actions against scammers

In January 2024, the CFTC charged Debiex, a cryptocurrency platform, with engaging in romance scam tactics to convince victims to open and fund trading accounts. The agency alleged that Debiex misappropriated $2.3 million in customer funds intended for digital asset commodity trading over nearly two years.

Scam Center Strike Force (2025)

On November 12, 2025, the U.S. Attorney for the District of Columbia, together with the FBI and U.S. Secret Service, announced the establishment of a Scam Center Strike Force specifically targeting Southeast Asian criminal operations running pig butchering schemes.

The Strike Force has already achieved significant results:

• Over $401 million in cryptocurrency seized from scam operators
• Additional $80 million in forfeiture proceedings underway
• Civil forfeiture actions filed to return recovered funds to victims
• Criminal investigations launched against scam center leaders and operators

These enforcement actions represent a coordinated federal response to what has become a multi-billion-dollar criminal enterprise. However, victims should not wait for government action—pursuing immediate civil litigation can be critical to recovering losses.

Legal Recourse for Pig Butchering Scam Victims

If you’ve lost money to a pig butchering scam, you may have several legal options for pursuing recovery. While retrieving stolen cryptocurrency is challenging, it is not impossible, particularly when you act quickly and work with experienced legal counsel.

Federal Recovery Programs

The Department of Justice has filed multiple civil forfeiture actions to recover cryptocurrency seized from pig butchering operations and return it to victims. For example:

• The U.S. Attorney’s Office for the District of Columbia filed a civil forfeiture action to recover cryptocurrency worth $2.5 million for pig butchering victims
• The District of Massachusetts has pursued forfeiture actions that resulted in some victims receiving money back
• The FBI and Secret Service continue to trace and seize cryptocurrency linked to these schemes

However, these federal programs are limited in scope and may not reach all victims. Private legal action can provide additional avenues for recovery.

Securities Law Claims

Pig butchering schemes often violate federal and state securities laws. An experienced securities fraud attorney can evaluate whether your case involves:

• Federal securities fraud: Violations of Securities Act of 1933 or Securities Exchange Act of 1934
• State securities violations: Blue sky law violations in California or other states
• RICO claims: If the operation constitutes an organized criminal enterprise
• Wire fraud: Use of electronic communications to perpetrate the scheme

These claims can potentially reach beyond the direct scammers to include platforms, payment processors, or other entities that facilitated the fraud.

Blockchain Forensics and Asset Tracing

One advantage of cryptocurrency fraud compared to traditional financial crimes is that blockchain transactions create a permanent, traceable record. Working with blockchain forensics experts, attorneys can:

• Trace the movement of stolen cryptocurrency across multiple wallets and exchanges
• Identify points where funds entered regulated exchanges
• Issue subpoenas to cryptocurrency exchanges for account holder information
• Freeze assets at exchanges before they can be fully laundered
• Provide evidence for civil forfeiture proceedings

Time is critical for blockchain tracing. The longer scammers have to move and mix cryptocurrency, the harder it becomes to trace and recover.

Tax Deduction for Theft Losses

While not a full recovery, pig butchering victims may be eligible for tax relief. The IRS has confirmed that losses from pig butchering scams qualify as theft loss deductions under Internal Revenue Code Section 165(c)(2) when certain conditions are met.

To claim this deduction, victims must demonstrate:

• The loss resulted from theft (fraud qualifies)
• The transaction was entered into for profit
• The loss occurred in a transaction entered into for profit
• Proper documentation exists (police reports, communications, transaction records)

This deduction can provide some financial relief, though it does not replace the stolen funds. A qualified tax attorney or CPA familiar with cryptocurrency fraud can help maximize this benefit.

Warning Signs of Pig Butchering Scams

Recognizing the red flags of pig butchering scams can help you avoid becoming a victim or identify that you’re being targeted before suffering significant losses.

Verify Before You Invest

Before depositing funds into any cryptocurrency platform, take these verification steps:

• Research the platform: Check if it’s registered with the SEC or CFTC; search for regulatory warnings or complaints
• Verify domain registration: Legitimate exchanges have been operating for years; newly created websites are suspicious
• Test small withdrawals: Before depositing large sums, verify you can successfully withdraw a small test amount
• Check independent reviews: Look for reviews on multiple platforms, not just the company’s website or app store
• Consult with a financial advisor: Have an independent professional review the investment opportunity

Remember: Legitimate cryptocurrency exchanges do not recruit investors through dating apps or social media direct messages. They don’t guarantee returns. And they don’t make it difficult to withdraw your funds.

Immediate Steps If You’ve Been Victimized

If you realize you’ve been targeted by a pig butchering scam, taking immediate action can significantly improve your chances of recovering at least some of your losses.

While reporting to these agencies is essential, government resources are limited and may not prioritize individual cases. Working with a private attorney allows you to pursue your specific case aggressively, using civil litigation tools that aren’t available to law enforcement.

How a Pig Butchering Scam Lawyer Can Help

Recovering from a pig butchering scam requires specialized legal expertise that bridges securities law, cryptocurrency technology, and investment fraud litigation. An experienced attorney can provide critical assistance in several areas.

Immediate Response and Evidence Preservation

The first 48 hours after discovering a pig butchering scam are critical. An attorney can immediately:

• Guide you through evidence preservation to ensure nothing is lost or compromised
• Initiate blockchain tracing to identify where your cryptocurrency was sent
• Contact exchanges to freeze accounts before funds are moved or converted
• File emergency legal motions if identifiable defendants can be located
• Coordinate with law enforcement to support criminal investigations

Asset Tracing and Recovery

Unlike traditional theft, cryptocurrency transactions leave a permanent trail on the blockchain. A knowledgeable attorney working with blockchain forensics experts can:

• Trace your cryptocurrency through multiple wallets and exchanges
• Identify where funds were converted to fiat currency or other assets
• Issue subpoenas to cryptocurrency exchanges for user information
• File civil claims to freeze and recover assets at regulated exchanges
• Participate in federal forfeiture proceedings to claim recovered funds

Civil Litigation Against Multiple Defendants

While the direct scammers may be located overseas and difficult to pursue, pig butchering schemes often involve multiple parties who may be within reach of U.S. courts:

• Cryptocurrency exchanges: Platforms that knowingly processed fraudulent transactions may have liability
• Payment processors: Companies that facilitated initial deposits to scam platforms
• Technology providers: Entities that provided website hosting or app development for fraudulent platforms
• Promoters and recruiters: Individuals who helped market or operate the scam within the United States

An experienced securities fraud attorney knows how to identify all potentially liable parties and pursue claims under securities laws, fraud statutes, and consumer protection regulations.

Navigating Federal Recovery Programs

The Department of Justice and other agencies have established programs to return seized cryptocurrency to victims, but navigating these programs requires legal expertise:

• Understanding eligibility requirements for federal victim compensation programs
• Filing claims in federal forfeiture proceedings
• Providing documentation to establish your losses and claim priority
• Monitoring ongoing criminal cases that may result in restitution orders

Why Choose Varnavides Law for Pig Butchering Cases

Gary Varnavides brings a unique perspective to cryptocurrency fraud cases, having spent 10 years at Sichenzia Ross Ference LLP defending broker-dealers and financial institutions in securities litigation. This insider knowledge of how financial institutions operate—and how they defend against fraud claims—provides a strategic advantage when pursuing recovery for victims.

Our firm’s experience includes:

• Securities law expertise: Deep understanding of federal and state securities regulations applicable to cryptocurrency investments
• Financial fraud litigation: Proven track record handling complex fraud cases involving multiple defendants and jurisdictions
• Understanding of cryptocurrency markets: Knowledge of how crypto exchanges operate and how to trace digital asset transactions
• Regulatory navigation: Experience working with SEC, FINRA, and other regulatory agencies on investment fraud matters

Licensed in California, New York, and New Jersey, we represent clients nationwide in cryptocurrency fraud cases, including victims of pig butchering scams.

Fee Structure for Pig Butchering Cases

We understand that victims of pig butchering scams have already suffered significant financial losses. We handle most cryptocurrency fraud cases on a contingency fee basis:

• No upfront attorney fees: You don’t pay legal fees unless we recover money for you
• Contingency arrangement: Our fee is a percentage of what we recover; the specific percentage is discussed during your free consultation
• Case costs: You remain responsible for case costs, which may include court filing fees, expert witness fees for blockchain forensics, and costs of obtaining records through subpoenas

During your free consultation, we’ll review your case, explain the potential for recovery, and discuss the fee arrangement in detail. We can also discuss payment arrangements for case costs if needed.

Frequently Asked Questions