“Trusted, Then Betrayed”… Crypto Market Sees $75 Billion in Pig-Butchering Losses

▲ Cryptocurrency scams, cryptocurrency crime/ChatGPT-generated image ©

Pig butchering scams, which cruelly exploit trust as a financial weapon to drive victims to ruin, are emerging as a serious social problem in the virtual asset market.

According to Cointelegraph on February 23 (local time), the so-called pig butchering scam is named after the practice of “fattening” victims with trust before stealing their assets. Criminal organizations approach targets through social media or dating apps, engaging in everyday conversations over several months to build emotional bonds. This process goes beyond simple financial fraud, relying on psychological tactics that deeply infiltrate victims’ daily lives and cloud their judgment.

Once trust is secured, scammers lure victims to fake virtual asset investment platforms by promising high returns. These platforms are designed to closely resemble legitimate exchanges, displaying manipulated figures that make deposited Bitcoin (BTC) or Ethereum (ETH) appear highly profitable. Initially, small withdrawals are allowed to reassure victims, encouraging them to pour in all available funds, including retirement savings or loan proceeds.

When a victim attempts to withdraw a large sum, the full-scale theft begins. The platform demands additional deposits under the pretext of taxes, fees, or security approvals, pressuring the victim further. Once the victim reaches the limit of their financial resources, the scammers cut off all contact and disappear. Exploiting the hard-to-trace nature of virtual assets, this crime destroys not only victims’ finances but also the very foundation of their lives.

Recent studies show that global losses from pig butchering scams have exceeded $75 billion. In particular, in parts of Southeast Asia, trafficked individuals are reportedly forced to participate in these schemes from detention camps, forming an international criminal ecosystem. Criminal organizations are also adopting artificial intelligence technologies to craft increasingly sophisticated conversation scripts, expanding their reach worldwide.

Regardless of the technological maturity of the virtual asset market, crimes targeting human psychology are becoming increasingly sophisticated. Investigative agencies and security experts advise categorically rejecting investment solicitations that originate from online relationships. As criminal tactics grow more advanced, both heightened individual security awareness and the establishment of institutional safeguards are urgently required.

*Disclaimer: This article is for investment reference purposes only and accepts no responsibility for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*