One Victim Loses $300,000 In “Pig Butchering” Crypto Scam

A Boston man has become the latest victim of a so-called “pig butchering” scam. This phrase refers to a type of fraud that involves building a personal rapport with the victim before fleecing him or her. Such crimes are on the rise as newcomers untrained to spot fraud look for quick wins in the crypto markets.

Although crypto is increasingly used for this type of theft, it doesn’t have to be a component. The common denominator in pig butchering scams is a romantic element. Building trust on a false pretext, thus enabling the criminal to access the victim’s finances.  

Crypto Scam Involving a Fake Personal Relationship

According to a report by local media outlet WCVB, “Scott,” a man from South Boston, began an online relationship with another man. They talked extensively about various topics, including work, food, and a friend’s injury. Eventually, the topic turned to the trading profits of Scott’s online “friend.”

Scott said he refused to give the other man money. “So that’s when [the scammer] started saying ‘No, you don’t give it to me. You establish your own account, and I’ll guide you.’”

After making impressive returns on a small $500 investment, which he was able to withdraw, Scott eventually decided to bet $300,000. For those who have studied this type of fraud, the chain of events is all too familiar.

Now, Scott, despite having a million-dollar balance displayed on his account, could not access the funds. Each time he tried to withdraw, the scammer offered an excuse and asked for additional funds.

Victims Lured by the Promise of Big Returns

According to WCVB, Matthew Giacobbi, an assistant special agent in charge of the FBI’s Boston Division, revealed that cryptocurrency scams have undergone a dramatic surge. Giacobbi said nationwide fraud in 2021 amounted to $907 million but skyrocketed to over $2.5 billion in 2022.

Scammers prefer crypto for several reasons. First, only a few people have a deep understanding of it. Second, its complexity confuses and misleads victims, who may not know how to use or trade it properly. Lastly, crypto is famous for making some people rich fast thanks to well-publicized market surges.

BeInCrypto has documented these scams extensively as their numbers have risen. Last year, California’s Regional Enforcement Allied Computer Team (REACT) investigated over 50 cases.

Even so, according to the 2023 Crypto Crime Report by Chainalysis, underreporting is a particular problem with pig butchering scams. So even these shocking numbers do not capture the full scope of the problem.

In April, the US Department of Justice seized $112 million in crypto linked to pig butchering scams. The action targeted six accounts associated with a pattern of criminal behavior. The most lucrative account held around $66.4 million.