What is a Pig Butchering Scam?
Pig butchering scams have become common in the crypto market. Learn how pig butchering scams work, how to avoid them, and how to report them in our guide.
Pig butchering scams are a common scam in the crypto market.
The scam involves establishing a relationship with the target to facilitate financial exploitation at a later date.
Victims should report scams to state and federal authorities.
Unfortunately, recovery of funds is often impossible.
What are pig butchering scams?
Pig butchering scams are a kind of investment fraud that are common within the crypto market, particularly. The scam involves the scammer building a relationship with targets via social engineering to lure them into a fake investment opportunity.
Blockchain analytics firm Chainalysis reported in 2025 that pig butchering scam revenue had grown nearly 40% YOY, largely in part to scammers leveraging AI.
Pig butchering scam meaning
The name comes from the Chinese ‘shazhupan’, roughly translated as the killing pig game. It’s derived from the analogy of fattening the pig before slaughter, as the scammer gains the target's trust before making off with funds.
Read next: Bitcoin Scams & Crypto Scams
Pig butchering scams explained
A pig butchering scam usually starts with casual outreach. This might come via a DM on social media, a text message, or an email. The aim of the game at this point of the scam is to establish a conversation that leads to ongoing communication, even if that starts with a “whoops, wrong number”.
After this point, scammers are trained to use techniques like mirroring shared hobbies, locations, or romantic interests to grow a relationship and trust with the target. This may go on for weeks or months and can be likened to fattening a pig for slaughter. At this point, scammers may share images of their lavish lifestyle as well to promote the idea that they’re wealthy.
Once the relationship is established, the scam is introduced, often in the form of a new investment platform or cryptocurrency promising huge returns. It’s important to note here, the cryptocurrencies and platforms are not real, even if they’re using a legitimate platform name fraudulently.
If a fraudulent platform is being used, these platforms may display fake returns on a screen to encourage the target to invest more. In other instances, scammers may say a further fee is required to withdraw funds. All of this is fabricated from start to finish. The second the target has invested their funds, they’re gone. But some of these scams are advanced enough to encourage further investment from targets before making off with funds entirely.
Pig butchering scam example
Initial contact: Often a “wrong number” text or message on dating platforms leads to light chat.
Fostering trust: Scammers use fake social media personas, flaunt fictitious success, and craft a compelling backstory.
Introduce the fake trading platform: Once trust is gained, they propose a high-yield crypto investment platform—available via website or app—that appears legitimate but is fully controlled by scammers.
Facilitating the cryptocurrency transfer: Victims are guided to convert fiat to crypto (via legit exchanges, ATMs, or wallets) and send it to the fake platform.
Fabricating returns: The platform shows fake profits to entice continued investment
Cash-out & disappearance: When victims try to withdraw, scammers vanish, taking all funds.
Pig butchering crypto scams
So why do pig butchering scams involve crypto?
Unfortunately, crypto’s anonymous, unregulated, and irrevocable nature makes it pretty ideal for scammers. It means scams can occur entirely online, often with little process for funds to be recovered at all.
This is improving slowly, thanks to exchanges implementing KYC procedures, some advancements within the DeFi space to reverse specific transactions within a given time frame, and analytical firms tracking down known scam addresses.
The best thing investors can do is be vigilant in avoiding scams altogether.
Read next: How to Avoid Crypto Scams
How to avoid pig butchering scams
Look out for red flags of pig butchering scams by avoiding:
Unexpected messages from strangers that seem harmless at first.
People who quickly try to move the conversation to WhatsApp or another platform.
Individuals who consistently avoid or refuse video calls, often making excuses.
Conversations that shift toward “insider” investment tips or opportunities.
Investment platform URLs that look suspicious or slightly differ from legitimate cryptocurrency sites.
Apps that trigger security warnings or are flagged by antivirus software.
Promises of unusually high or guaranteed returns. Remember, iif it sounds too good to be true, it probably is.
You can protect yourself with the following tips:
Never send money, invest, or trade with someone you’ve only met online.
Avoid discussing your finances or investment plans with online strangers.
Don’t share personal or financial details, like your bank account, Social Security number, ID, or passport, with anyone online or any unverified site.
Be skeptical of platforms or people promising extraordinary profits.
Stay alert to anyone pressuring you into fast decisions with “exclusive” offers.
How to report a pig butchering scam
Stop all communication immediately: If you suspect you’re dealing with a scammer, cut off contact right away. Don’t confront them, as that could lead to manipulation or threats.
Secure your accounts and funds: Change passwords on any accounts you may have shared or used during the scam. If you've sent funds, notify your bank or crypto platform right away to see if a transaction can be frozen or traced.
Gather evidence: Before reporting, collect everything you can, including screenshots of conversations, transaction records and wallet addresses, names, profiles, and contact info used by the scammer, and website or app names (especially if they're still active).
Report it to your state regulator: File a complaint with your state’s financial protection agency. For example, in California, that would be the Department of Financial Protection and Innovation (DFPI). Use their official website’s complaint form to submit details.
Notify federal authorities: You can also report scams to national agencies, including the FBI’s Internet Crime Complaint Center (IC3), the FTC’s ReportFraud.gov, and the SEC, if the scam involved securities or investments.
Alert the exchange or app: If you used a known crypto exchange (like Coinbase, Binance, etc.), report the fraud to them. They may be able to freeze the account the scammer used or help with a traceback.
Consider identity theft protection: If you shared personal documents (like your ID or passport), consider placing fraud alerts with credit bureaus and looking into identity theft monitoring.
Help others by spreading the word: Sharing your experience anonymously in forums or scam awareness groups can prevent others from falling into similar traps. Consider posting on social platforms or reporting the scam account profiles.
Read next: How to Report Stolen Crypto
How to recover pig butchering scam investment
Unfortunately, there’s often little investors can do to recover funds. This is due to a number of reasons, such as the inability to reverse crypto transactions, or that the scam has happened across several borders, or that the scammers themselves are anonymous. However, in some instances, depending on how the scam worked, you may be able to:
Speak to any legitimate exchange used to report the scam and they may be able to blacklist the scammers address
Speak to your bank about the potential of a chargeback
Report it to the authorities. If it’s a large-scale scam, there may be ongoing investigations.
A hugely important note here as well: do not use firms or platforms that claim to be able to recover your funds. These are almost always scams as well.
How to deal with crypto scams on taxes
We have a dedicated guide on how to report stolen cryptocurrency on taxes, but if you need to deal with your loss come tax deadline, Koinly can help. Try it free today.
