A pig-butchering scam is an investment fraud that starts as a friendly or romantic conversation with a stranger and ends with you sending cryptocurrency to a fake trading site or app. The signs are an unexpected contact who moves the chat to another app, talks up their investing success, promises profits with no risk, and blocks you from withdrawing unless you pay more. If you have not sent money, stop replying. If you have, contact your bank or exchange immediately and report it as described below.
Who this is for and what you will have at the end
This guide is for anyone who has been contacted by someone online who is now talking about crypto, or who has already invested and cannot withdraw. You will be able to recognize the stages of the scam, check an investment pitch against the red flags, take the right steps in the first hour after paying, and report it to the agencies that handle it. The article describes how the scam works only so you can spot it. It does not give a script for running one.
This is general consumer guidance based on FTC and FBI pages, checked October 31, 2026. It is not legal or financial advice.
How the scam works
The FBI's Internet Crime Complaint Center (IC3) describes the scheme this way. Criminals, often based overseas, use fake identities to contact people through dating apps, social media, professional networking sites or encrypted messaging apps. They build trust, often as a romance or confidence scam, then bring up cryptocurrency and claim expertise in it or ties to experts.
You are then directed to a fraudulent investment website or app that the criminals control. It shows fake profits, and you are pressured to invest more. When you try to withdraw, you are told to pay fees or taxes first. Even after paying, victims do not get their money back. IC3 notes newer variants, including liquidity mining and play-to-earn schemes.
The usual stages
| Stage | What it looks like |
|---|---|
| Contact | An unexpected message, a friend request, a dating-app match or a social media message |
| Trust | Daily chats, personal stories and photos, and a push to move to another messaging app |
| Introduction | The contact mentions making money with crypto, or an "investment manager" or "mentor" |
| Small win | A small deposit appears to grow quickly on a platform the contact recommends |
| Bigger deposits | You are encouraged to invest more, sometimes by borrowing or cashing out savings |
| Blocked exit | Withdrawals fail, or you are asked for fees, taxes or "verification" payments |
The FTC's guidance on romance scams matches the early stages: scammers want to move off the platform quickly, claim to be far away, refuse to meet in person, and eventually ask for money, including help with cryptocurrency investing.
Warning signs to check against
The FTC's cryptocurrency guidance lists signs of an investment scam. Use these as a checklist:
- Contact out of the blue. A so-called investment manager reaches out unprompted and says they will grow your money if you buy crypto and transfer it to their online account.
- Guaranteed profits. The FTC says nobody can make guarantees of zero risk or big returns, and that a celebrity endorsement or testimonials do not prove legitimacy.
- Dating mixed with investing. The FTC's advice is "Never mix online dating and investment advice." If someone you met on a dating site or app asks you to send crypto or money, or offers investment advice, treat them as a scammer.
- Vague explanations. A legitimate advisor can explain how the investment works and where your money goes. Big claims without details are a warning sign.
- Withdrawal problems. You cannot withdraw, or can only do so after paying high fees.
- Unfamiliar platform. The site or app is not one you found independently, and the contact walked you through installing it.
IC3 also warns, in a 2025 alert about hosting infrastructure used by these frauds, that an HTTPS or green lock icon does not mean a specific website is trustworthy. A padlock only means the connection is encrypted.
Messaging apps and the move off-platform
IC3 lists encrypted messaging apps, such as WhatsApp, among the channels used for first contact. The app itself is not the problem. The warning sign is a new contact quickly pushing to chat elsewhere and then raising money.
If you have not sent money
- Stop replying. You do not need to confront the person.
- Do not share financial or personal information. IC3 advises not to give unknown contacts such information or send them money.
- Verify independently. IC3 recommends verifying any investment opportunity and any cryptocurrency website or app before using it. Do not rely only on advice from someone you met online.
- Report the contact. Use the report function in the app where it started, and consider reporting to the FTC even without a loss.
- Tell someone you trust. The FTC suggests talking to friends or family, who may spot warning signs you have missed.
If you already sent money
Speed matters, but be realistic: crypto payments are usually not reversible. The FTC says you typically will not get the money back. These steps give you the best chance of limiting the damage.
In the first hour
- Stop sending money. IC3 advises victims who suspect a scam not to pay further fees or taxes to withdraw funds.
- Contact your bank, card company or the exchange you used. The FTC's romance scam page says to contact the company or your bank right away, tell them you paid a scammer, and ask for a refund. That applies whether you paid by wire, card, gift card or cryptocurrency.
- Stop all contact with the person.
- Keep records. Save messages, usernames, phone numbers, wallet addresses, website addresses, transaction IDs and screenshots before the scammer deletes anything. IC3 says reports with transaction details are most useful.
- Secure your accounts. If you installed an app they sent or shared screens, change passwords for your email, bank and exchange accounts from a device you trust. If remote access was involved, see what to do about a fake tech support pop-up.
Do not pay a recovery service
After a loss, you may be contacted by someone offering to recover your funds. The FBI's warning is direct: do not pay for services that claim to be able to recover lost funds. Treat unsolicited offers, including those in the same messaging app, as a second scam.
Where to report
The FTC lists these places for fraud and suspicious activity involving cryptocurrency:
| Agency or company | Where | Notes |
|---|---|---|
| Federal Trade Commission | ReportFraud.ftc.gov | General fraud reports |
| Commodity Futures Trading Commission | CFTC.gov/complaint | Commodities and derivatives fraud |
| Securities and Exchange Commission | sec.gov/tcr | Investment and securities fraud |
| FBI Internet Crime Complaint Center | ic3.gov/Home/FileComplaint | Include transaction details |
| The exchange you used | Its support or fraud team | The FTC lists the exchange as a place to report |
You can report to more than one. Also notify the app, dating site or platform where the contact began. If you are unsure which agency fits, start with the FTC and IC3.
For payments that went through a payment app rather than crypto, see Zelle, Venmo and Cash App scams: what to do.
Helping a family member or friend
People caught in this scam are often embarrassed or have been told to keep it secret. A few approaches help:
- Ask neutral questions: where the money is going, whether they can withdraw, and how they found the platform.
- Offer to look up the site together, and to check whether the registered business exists with the agencies above.
- Avoid blame. The scheme is built on weeks of attention and trust, and shame stops people from reporting.
- Help them follow the first-hour steps and file reports.
Troubleshooting common situations
The site shows large profits but withdrawals fail
The balance on the screen is controlled by the operators. IC3 describes fake profits shown to victims and demands for fees or taxes at the point of withdrawal. Do not pay more. Stop and report.
They offer to teach you with a small amount first
A small deposit that appears to grow, or a small withdrawal that succeeds, is a tactic to build confidence. The FTC's guidance on guaranteed returns applies: nobody can guarantee profits.
The contact says you are the only one who can get in on it
Pressure to act quickly or secretly is a reason to stop. A legitimate investment can survive you taking a few days to verify it.
You are not sure whether you are being scammed
Pause deposits, ask the contact to explain exactly how the money is invested and where it is held, and search for the platform's name together with the word "scam" on independent sources. If the answers are vague or the person gets upset about your questions, treat it as a scam.
Checklist
- Never send money, crypto or gift cards to someone you only know online.
- Treat any online contact who brings up crypto investing as a red flag, especially after dating or friendly chat.
- Distrust guaranteed returns and websites or apps you were told to install.
- If asked for fees or taxes to withdraw, stop paying.
- If you paid, call your bank or exchange, keep records, and report to the FTC, IC3, CFTC and SEC.
- Never pay anyone who offers to recover your money for a fee.
References
- FTC, What to know about cryptocurrency and scams: https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams
- FTC, What you need to know about romance scams: https://consumer.ftc.gov/articles/what-know-about-romance-scams
- FBI IC3, Public Service Announcement on cryptocurrency investment fraud (March 14, 2023): https://www.ic3.gov/PSA/2023/psa230314
- FBI IC3, Funnull infrastructure alert (May 29, 2025): https://www.ic3.gov/CSA/2025/250529.pdf
- FTC, report fraud: https://reportfraud.ftc.gov
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