A Bitcoin investor lost his retirement savings after falling victim to a so-called “pig butchery” scam, despite repeated warnings from his advisory firm, according to a first-hand account shared by a Bitcoin wealth advisor.
Key points to remember:
- A Bitcoin investor lost his retirement savings after ignoring warnings and sending funds to a romance scammer.
- Pig butchery scams use emotional manipulation and false identities, including AI-generated images, to lure victims.
- Scams are increasing, costing victims $5.5 billion in 2024 and leading to increased police measures.
Terence Michael, an author and advisor affiliated with The Bitcoin Adviser, said an anonymous customer transferred his Bitcoin holdings to a scammer after being approached online by a woman posing as a trader.
The woman promised to double her Bitcoin and gradually built what appeared to be a romantic relationship, a tactic characteristic of pig butchery scams.
Bitcoin Advisor Says Client Ignored Warnings, Lost Funds to Scam
In a post shared on X, Michael said he made “numerous phone calls” and sent a “series of text messages” in an attempt to stop the transfer.
The warnings went unheeded. While Michael was eating dinner, he received a message from the customer confirming that the funds were missing.
“My client was falling for a pork butchering scam,” Michael wrote. “And last night…I received a devastating text from him saying he had lost everything.
Unlike traditional cyberattacks that rely on malware or direct wallet compromises, pig butchery scams rely on emotional manipulation.
Victims are convinced to voluntarily send over their assets, often after being groomed over days or weeks of conversations mixing investment advice and personal and romantic grievances.
Michael said the client, who had recently divorced, went above and beyond sending Bitcoin. He also bought a plane ticket for the scammer, hoping to meet her in person.
Once the transfer was complete, the attacker allegedly admitted that the photos used throughout the relationship were fake and generated using artificial intelligence tools.
The case highlights the growing scale of pig butchery scams in the crypto industry. In 2024 alone, these schemes cost victims an estimated $5.5 billion from about 200,000 reported cases, according to industry data.
In June, the U.S. Department of Justice announced the seizure of more than $225 million in cryptocurrency linked to pig butchery operations, highlighting authorities’ growing response to one of crypto’s most damaging fraud trends.
AI-powered crypto scams hit $4.6 billion as deepfakes fuel new wave of fraud
As noted, the rapid adoption of artificial intelligence is driving a new generation of crypto scams, pushing global losses to $4.6 billion in 2024, according to a 2025 Anti-Scam Research Report released on June 10.
The study, co-authored by Bitget, SlowMist and Elliptic, found that scammers are increasingly using AI-generated deepfakes, fake video calls and Trojan-infected job offers to deceive their victims, with at least 87 AI-powered fraud networks taken down in the first quarter of 2025 alone.
The report warns that deep impersonations, social engineering, and Ponzi schemes disguised as DeFi or NFT projects now dominate the threat landscape.
Criminal groups also use blockchain bridges and concealment tools to launder stolen funds, complicating recovery efforts.
The article Bitcoin Adviser Reveals How Client Lost Retirement Funds to Romance Scam appeared first on Cryptonews.
