It starts with a wrong number text, a Tinder match, or a friendly message on LinkedIn. They don’t ask for money right away. In fact, they might chat with you for weeks or even months about life, hobbies, and goals.
Then, casually, they mention how much money they’re making trading crypto. They offer to show you how.
This is the beginning of the Pig Butchering Scam (known in Chinese as Sha Zhu Pan). It is widely considered the most effective and devastating financial fraud in the world today, stealing billions of dollars annually from victims who never saw it coming.
At Bitremit, we see the aftermath of these scams daily. In this guide, we’ll explain exactly how the psychological manipulation works and how you can spot it before it’s too late.
What is the “Pig Butchering” Scam?
The term “Pig Butchering” comes from the scammers’ strategy: they “fatten up” the victim (the pig) with flattery, friendship, and false profit reports before “butchering” them (stealing all their money).
Unlike traditional Nigerian Prince emails or tech support scams, this fraud relies on long-game emotional manipulation. Victims are often smart, tech-savvy professionals who are slowly conditioned to trust the scammer over weeks or months.
How the Scam Works: The 4 Stages
1. Contact & Grooming
The scammer creates a fake profile using stolen photos of attractive, successful people. They initiate contact via:
- Dating apps (Tinder, Hinge, Bumble)
- Social media (Instagram, LinkedIn)
- “Wrong number” WhatsApp or SMS messages
They act wealthy, sharing photos of luxury cars, meals, and vacations. They quickly try to move the conversation to WhatsApp or Telegram for “privacy.”
2. The “Investment” Pitch
Once trust is established or a romantic connection is formed, they subtly introduce cryptocurrency. They don’t ask for money directly. Instead, they say:
“I’m trading right now, look at these profits.”
They send screenshots of massive gains. When you show interest, they offer to teach you. They will tell you to download a legitimate app like Coinbase or Crypto.com to buy USDT (Tether) or ETH.
3. The Fake Platform
This is the crucial step. They instruct you to move your crypto from the legitimate exchange to a fake trading platform that they control. It looks professional, with live charts and customer support.
When you make a small test investment (e.g., $500), they manipulate the numbers to show you a huge profit. They usually let you withdraw this small amount back to your bank account. This builds total trust. You think it’s real because you got money back.
4. The Butchering
Convinced the system works, you invest larger amounts—$10k, $50k, even your retirement savings. The screen shows millions in profits.
But when you try to withdraw, the platform freezes. Customer support demands “taxes,” “security deposits,” or “verification fees” to release funds. No matter how much you pay, you never get your money back.
Warning Signs You Are Being Targeted
- They are too perfect: Attractive, wealthy, consistently polite, and interested in you immediately.
- They refuse to video chat: Or the call is very short/blurry (pre-recorded loops).
- They mention specific specialized platforms: They insist you use a specific website or app (“DeFi mining,” “AI trading node”) rather than a major exchange like Kraken or Binance.
- Guilt tripping: If you hesitate to invest, they act hurt: “Don’t you trust me?” or “I’m trying to help you build our future.”
What To Do If You Have Been Scammed
If this sounds familiar, stop sending money immediately. The “taxes” are just another layer of the scam.
- Cut Contact: Block them everywhere. Do not tell them you know it’s a scam; they may try to delete evidence.
- Report It: File a report with your local police and the FBI IC3 if you are in the US.
- Trace the Funds: While transactions can’t be reversed easily, the funds can be traced on the blockchain.
For a detailed breakdown of recovery steps, read our guide on What to Do If You’ve Been Scammed.
Need help analyzing the transaction? Contact Bitremit support. We can help verify if the platform is fraudulent and help you document the loss for authorities.
