Pig butchering is perhaps the most common scam for enticing victims to send fiat currency, such as US Dollars, and converting it into cryptocurrency for riches they will never receive. It most often involves enticing the victim to invest a small amount of money using a financial institution or cryptocurrency exchange that can convert US Dollars or other "fiat currency" into cryptocurrency such as Bitcoin, Ether or Solana. The scammer will typically use pseudonymous communications mediums such as WhatsApp, Telegram or an email address and their real identity is never actually known to the victim. In fact, the victim may think they are speaking to someone who is legitimate, having used an email address that resembles but is not actually a legitimate organization (such as mictrostrategycompanyusa.net, which is not the official MicroStrategy website.)
The victim may be given an app to track their crypto desposits and their gains. The victim will see gains and then be asked to invest more - which the victim does seeing the gains, slowly being "fattened" up like a "greedy pig." The sums get larger as do the gains until a large sum is asked to invest after seeing proof of success - and the victim sends it, believing that they will now be substantially wealthier after only a few days or weeks.
What the victim doesn't know is that the app or website they have been using is a fraud. The cryptocurency they believed they purchased is actually held in an account owned and controlled by the scammer (known as a "blockchain wallet address." The exchange they think being run by the fraudster doesn't actually exist. It's just an app showing victims what the scammer wants them to see. When it comes time for the victim to withdraw their funds, they discover that their credentials don't allow them to do so. At that point, there is no recourse for the victim. The scammer usually exits and the contact information they have either has been deleted or provides no response. If a public blockchain such as Bitcoin, Ether or Solana has been used, there is no central authority to freeze funds or return them. There is no organization running the platform. This is what the victim will soon learn after their funds are gone.
One of the most interesting articles on the South Asia pig butchering scam was authored by Chainalysis, which is a worthwhile read for anyone interested in this subject. It's a painful read but an important one. Stay safe online and using blockchain technology.
www.chainalysis.com
The victim may be given an app to track their crypto desposits and their gains. The victim will see gains and then be asked to invest more - which the victim does seeing the gains, slowly being "fattened" up like a "greedy pig." The sums get larger as do the gains until a large sum is asked to invest after seeing proof of success - and the victim sends it, believing that they will now be substantially wealthier after only a few days or weeks.
What the victim doesn't know is that the app or website they have been using is a fraud. The cryptocurency they believed they purchased is actually held in an account owned and controlled by the scammer (known as a "blockchain wallet address." The exchange they think being run by the fraudster doesn't actually exist. It's just an app showing victims what the scammer wants them to see. When it comes time for the victim to withdraw their funds, they discover that their credentials don't allow them to do so. At that point, there is no recourse for the victim. The scammer usually exits and the contact information they have either has been deleted or provides no response. If a public blockchain such as Bitcoin, Ether or Solana has been used, there is no central authority to freeze funds or return them. There is no organization running the platform. This is what the victim will soon learn after their funds are gone.
One of the most interesting articles on the South Asia pig butchering scam was authored by Chainalysis, which is a worthwhile read for anyone interested in this subject. It's a painful read but an important one. Stay safe online and using blockchain technology.
Pig Butchering Gangs, Human Trafficking, and Crypto: An Analysis
Read our blog to learn about the intersection of pig butchering scams and human trafficking, and see analysis of related crypto activity.
