How pig-slaughtering crypto scams are turning trust into a financial weapon

Key takeaways

• Unlike phishing attacks that quickly defraud victims, pig butchering scams build long-term emotional trust before introducing fraudulent crypto investment opportunities.

• From casual outreach and relationship building to fake profits, increased deposits and blocked withdrawals, each step is carefully designed to deepen engagement.

• Blockchain security company CertiK reported $370.3 million in scam losses in January 2026 alone, with social engineering tactics accounting for the majority.

• Authorities target fraudulent networks and money laundering operations, but cross-border jurisdictional issues and encrypted communications complicate enforcement.

Pig butchery scams involve a methodical, long-term approach in which scammers instill trust in their targets and then exploit it for monetary gain. Over the past few years, such schemes have proliferated in the crypto sector, causing traders to fear losing their funds. These frauds have reshaped the way regulators and law enforcement view crypto crime.

This article explores how crypto pig slaughter scams manipulate victims through building long-term relationships and exploiting emotional trust using fabricated investment platforms. It explains the psychological tactics used by scammers, how funds are extracted over time, and why these schemes have become one of the fastest growing global crypto fraud models.

Defining a pork butchery scam

Pig butchery derives from the Chinese expression “Sha Zhu Pan“, which refers to the grooming of a target like livestock before slaughter. Applied to fraud, this involves scammers establishing deep personal connections over long periods of time. They then trick victims into sending funds to a deceptive digital currency business.

While typical phishing tactics rely on urgency and alarm, pig slaughter scams rely on persuasion and persistence. Fraudsters take on roles such as confidant, advisor or financial consultant, methodically building trust before executing the scheme.

Did you know? Some victims interact with fraudsters for several months before investing, making pig slaughter one of the oldest and most emotionally manipulative forms of online financial fraud.

Breaking the Scam Process

Understanding each step of a pig butchering scam reveals how emotional manipulation and financial deception intertwine to trap victims:

• First awareness: Perpetrators usually contact their victims through dating platforms, professional networks like LinkedIn, social networks like Instagram, messaging services like Telegram or unsolicited SMS messages. The introductory message is designed to alleviate suspicion and often seems accidental or casual.

• Promote connection: Over the next few days or weeks, the scammer maintains a connection with the victim by sharing “fabricated” anecdotes, routine details, and “professional” accomplishments. Many scammers pose as successful digital asset traders and financial experts.

• Unveiling the opportunity: Eventually, the scammers turn the conversation to investing. They claim to know a high-yield crypto trading strategy or have access to insider knowledge or a private investment platform. They show victims screenshots of fake profits and guide them to professional-looking scam websites.

• First modest returns: Scammers encourage individuals to start with minimal investments. The system can show quick “wins” to build trust. Sometimes scammers allow small withdrawals to make the platform appear legitimate.

• Intensification: As the victim’s trust in the fraudsters increases, they are encouraged to invest larger amounts. Fraudsters may advise their victims to take out bank loans, withdraw their savings or even borrow from friends.

• Blocked withdrawals and exit: When victims attempt to recover the “deposited” amount, the system blocks access and demands additional “fees”. Subsequently, the scammers disappear.

Did you know? Law enforcement agencies in the United States and Europe have begun freezing crypto wallets linked to pork butchery rings, sometimes recovering a portion of the funds through coordinated blockchain tracing efforts.

Using trust as a psychological weapon

The main characteristic that distinguishes pig butchery scams is their use of psychological and emotional exploitation. Fraudsters target vulnerabilities such as:

• Feelings of isolation or strong need for connection and affection

• Economic difficulties combined with the hope of getting rich quickly

• Authority bias, which refers to the tendency to rely on perceived experts

• Trust the apparent evidence of success.

Perpetrators intentionally spend time in the preparation phase rather than pushing for rapid action. A prolonged period of interaction deepens the victim’s feelings of attachment and loyalty. When it comes time to send money, many victims truly feel like they are associating with a reliable ally or close companion.

The emotional layer complicates the path to recovery, both financially and psychologically.

Did you know? Pig butchery exploits take place through complex laundering chains involving multiple wallets, crossed chain bridges and over-the-counter (OTC) brokers before funds are cleared.

Assess the extent of the problem

Fraud involving cryptocurrency has seen a sharp increase in recent times. According to blockchain security company CertiK, fraudsters stole $370.3 million in January 2026 alone, the largest monthly total in almost a year. Of that amount, phishing and social engineering tactics accounted for approximately $311 million, a category that frequently includes pig butchery operations.

This rise follows significant crypto security breaches in 2025, particularly the hack of the Bybit exchange in February, which contributed to $1.5 billion in overall losses during this period.

Important judicial decisions once again demonstrate the scale of these crimes. In early 2026, Daren Li, a dual citizen of China and Saint Kitts and Nevis, was sentenced to 20 years in federal prison in the United States for running a vast cryptocurrency fraud ring. Prosecutors say his actions defrauded victims of more than $73 million, with co-conspirators creating fake websites and using shell companies.

Dimensions of crypto-related fraud

Trading digital currencies does not always result in fraud. However, cryptocurrency trading has its own dynamics.

• Speed ​​and finality: Crypto transactions become permanent once confirmed. Unlike card payments, no central authority can reverse the funds transfer.

• Global Reach: Fraudsters often operate in networks that cross national borders. Crypto enables seamless cross-border transfers, independent of conventional finance.

• Compelling interfaces: Fraudulent websites have become more sophisticated. Like legitimate platforms, they may offer dynamic pricing, user dashboards, and support features.

• Obfuscation using stablecoins and decentralized finance: To hide the trail of funds involved in these scams, assets are often exchanged for stablecoins or routed through decentralized systems.

Although the transparency of blockchain helps investigators, stolen assets can pass through a chain of addresses before an investigation begins.

Countermeasures to combat pig butchery scams

Security agencies have taken steps to discourage pig slaughter scams, which can be devastating for victims. Entities such as the U.S. Secret Service and Homeland Security are boosting joint efforts with anti-crime units focused on financial crimes.

Recent cases demonstrate that investigative agencies pursue not only individual fraudsters, but also laundering networks and shell companies that facilitate the movement of funds. However, implementation faces several challenges:

• Jurisdictional complexity

• Use of encrypted communications

• Fraudulent compounds operating in lightly regulated regions

• Reports of forced labor in some Southeast Asian scam hubs.

The global nature of these operations requires a coordinated international response.

Red flags to watch out for

Awareness remains the first line of defense against fraudulent activity. Common warning signs include:

• Unsolicited investment advice from online acquaintances

• Pressure to move conversations away from mainstream apps

• Assurances of high and consistent returns with low risk

• Requests to deposit crypto on unknown platforms

• “Tax” or “unlock” fee requirements before withdrawals.

Before investing in a platform, check with independent sources that it is credible.