Pig Butchering is a fraudulent scheme where criminals build long-term relationships with victims to convince them to invest in fake crypto platforms. The process involves five stages: acquaintance, grooming, baiting, scaling investments, and the final slaughter. Victims often believe they are managing their own accounts, while the platform displays fake profits to encourage further deposits.
The scheme often targets victims through social media or dating apps. Once trust is established, scammers introduce a fake trading platform. When a victim attempts to withdraw large sums, the platform demands additional fees or taxes. Sophos reported that some fraudulent apps bypass official store moderation by masquerading as legitimate tools like QR scanners before enabling trading interfaces.
In a notable case, the CEO of Heartland Tri-State bank in Kansas lost $1.1 million of personal savings, $60,000 from his daughter's education fund, and $40,000 from church funds. Between May and July 2023, he transferred an additional $47.1 million of bank funds to scammers. The bank went bankrupt, and the executive was sentenced to 24 years and five months in prison in August 2024.
Scam centers operate like corporations in Southeast Asia, often using forced labor. According to UN estimates, at least 120,000 people were held in Myanmar and 100,000 in Cambodia in 2023. In 2026, UNODC identified victims from at least 80 countries. These operations are often housed in rented complexes where organizers provide scripts and infrastructure for the scams.
Law enforcement agencies, including the FBI and FinCEN, have issued warnings regarding these investment scams. Interpol has suggested using the term romance baiting instead of Pig Butchering to reduce the stigma for victims. Despite various raids on scam centers, such as the one at KK Park in Myanmar in October 2025, the schemes remain widespread due to the irreversible nature of blockchain transactions.
