Pig Butchering Scams: How to Get Your Money Back - Murphy's Law

By Liam Murphy, Esq. | Murphy’s Law: The Crypto Law Firm

A stranger sends you a text. Maybe it looks like a wrong number. Maybe it arrives through a dating app, LinkedIn, or Instagram. A friendly conversation starts. Over days and weeks, trust builds. Eventually, the topic shifts to cryptocurrency investing. You are shown a platform with impressive returns. You deposit a small amount. It grows. You invest more. The gains are remarkable. Then you try to withdraw your money, and everything falls apart.

This is a pig butchering scam, and it is now the most financially destructive category of cryptocurrency fraud in the world.

According to the FBI’s 2024 Internet Crime Report, crypto investment fraud cost American victims $5.8 billion in a single year, with pig butchering schemes accounting for the dominant share of those losses. Globally, a University of Texas study traced over $75 billion in funds flowing from pig butchering victims to crypto exchanges between 2020 and early 2024. The FTC reports that investment scams were the costliest fraud category in 2024, totaling $5.7 billion in consumer losses.

If you have been victimized by a pig butchering scam, you are not alone, and you are not without options. This guide explains how these scams work, the warning signs you should know, the steps to take immediately after discovering you have been scammed, and the legal options that may help you recover your money.

What Is a Pig Butchering Scam?

A pig butchering scam (sometimes called a “romance baiting” scam by law enforcement) is a long-duration confidence fraud that combines elements of romance scams, investment fraud, and social engineering. The term comes from the Chinese phrase “shā zhū pán,” which translates roughly to “slaughtering the pig.” The victim is the “pig” who is gradually “fattened up” with trust and false profits before the scammer takes everything.

These scams typically follow a predictable pattern.

Phase 1: The Contact

Scammers initiate contact through dating apps, social media platforms, messaging apps like WhatsApp or Telegram, or even what appear to be wrong-number text messages. They use fake profiles with stolen photos, carefully crafted personas, and, increasingly, AI-generated content to appear convincing.

Phase 2: The Grooming

Over days, weeks, or even months, the scammer builds a personal relationship with the victim. This may involve romantic interest, friendship, or mentorship. The scammer is patient, attentive, and consistent. The goal is to establish deep emotional trust before money is ever discussed.

Phase 3: The Investment

Once trust is established, the scammer casually introduces the idea of cryptocurrency investing. They may claim to have a mentor, an insider connection, or a proprietary trading strategy. They direct the victim to a platform that looks professional and legitimate but is entirely fake. Early deposits appear to generate substantial returns. The victim is encouraged to invest more, sometimes borrowing money, liquidating retirement accounts, or taking out loans.

Phase 4: The Butchering

When the victim attempts to withdraw funds, they are told they need to pay fees, taxes, or other charges before their money can be released. These demands escalate. Eventually, the scammer disappears, the fake platform goes offline, and the victim is left with nothing. In many cases, the victim is then targeted by secondary “recovery scams” from fraudsters posing as recovery services.

How Big Is the Pig Butchering Problem?

The numbers are staggering.

$5.8 billion in crypto investment scam losses reported to the FBI in 2024, with pig butchering as the leading scheme
$9.3 billion in total cryptocurrency fraud losses reported to the FBI’s IC3 in 2024, a 66% increase over 2023
$75 billion+ traced globally by University of Texas researchers flowing from pig butchering victims to crypto exchanges between 2020 and early 2024
200,000+ people estimated by the United Nations to be held in scam compounds across Southeast Asia, many of them trafficking victims forced to run these scams
75% of victims lost more than half of their net worth to pig butchering schemes, according to blockchain security firm Cyvers
Americans over age 60 were the hardest-hit demographic, reporting $2.8 billion in crypto scam losses in 2024

In November 2025, the U.S. Department of Justice established a dedicated Scam Center Strike Force specifically targeting Southeast Asian scam operations. The Strike Force has already seized over $400 million in cryptocurrency and is pursuing additional forfeiture proceedings.

Warning Signs of a Pig Butchering Scam

These scams are sophisticated, and even experienced professionals have been victimized. A Kansas bank CEO fell for a pig butchering scheme and was convicted of embezzling $47 million from his own institution. Recognizing the warning signs early is critical.

Unsolicited contact: A stranger reaches out through a dating app, social media, or a random text message that seems like a wrong number.
Quick emotional bond: The relationship escalates rapidly. The person is unusually attentive, flattering, and eager to build trust.
Crypto investment pitch: The conversation naturally shifts to cryptocurrency, trading strategies, or an “amazing” investment opportunity they want to share with you.
Unfamiliar platform: You are directed to an exchange or trading platform you have never heard of. The platform may look professional but is not registered with U.S. regulators.
Fake early profits: Your initial deposits show impressive returns. You may even be allowed to withdraw a small amount to build confidence.
Pressure to invest more: Once you are hooked, the person encourages larger deposits. They may suggest borrowing money, cashing out retirement funds, or selling assets.
Withdrawal problems: When you try to withdraw, you are told you must pay taxes, fees, or a deposit before funds can be released. These demands never stop.
Secrecy requests: The person discourages you from discussing the investment with family, friends, or financial advisors.

Important: Pig butchering scammers are professionals. Many operate from organized crime compounds in Southeast Asia using scripted playbooks, AI-generated deepfakes, and teams of operators working around the clock. Falling for one of these scams does not reflect a lack of intelligence or judgment. These operations are designed to exploit basic human trust.

What to Do If You Have Been the Victim of a Pig Butchering Scam

Time is the most critical factor in crypto fraud recovery. The faster you act after discovering the scam, the better your chances of tracing and potentially recovering your funds. Here are the steps you should take immediately.

Stop all communication and payments. Do not send any additional funds, no matter what the scammer tells you. Cut off contact completely. Do not respond to messages claiming you can recover your money by paying more.
Preserve all evidence. Save every text message, chat log, email, screenshot, transaction receipt, wallet address, and transaction ID related to the scam. Do not delete anything. This documentation is essential for both law enforcement and any legal action.
Notify your bank and any crypto exchanges involved. Contact your bank and any legitimate exchanges (such as Coinbase, Kraken, or Binance) where you purchased or transferred cryptocurrency. Request that they flag the relevant transactions and, where possible, freeze associated accounts.
File a report with the FBI’s Internet Crime Complaint Center (IC3). Go to ic3.gov and submit a detailed complaint. For losses over $100,000, the IC3’s Recovery Asset Team may initiate emergency procedures to freeze funds. Your IC3 filing also creates a federal record that can trigger field office referrals.
Report to the U.S. Secret Service. Email [email protected] with details of the scam. The Secret Service will refer your report to the appropriate field office for investigation.
File a report with local law enforcement. Even though crypto fraud is typically investigated at the federal level, a local police report creates additional documentation for your case.
Contact a crypto lawyer. An attorney experienced in crypto fraud recovery can help you trace your funds, send preservation requests to exchanges, pursue civil litigation, and connect your case with ongoing federal enforcement actions and forfeiture proceedings.

Legal Options for Pig Butchering Scam Victims

Recovering funds lost to a pig butchering scam is challenging, but it is not impossible. Several legal avenues exist, and the landscape has shifted significantly in favor of victims as law enforcement ramps up enforcement efforts.

Civil Litigation

A crypto lawyer can file civil claims against identifiable parties involved in the scam, including exchanges that failed to implement adequate anti-fraud measures, payment processors, and any individuals or entities whose identities can be established through blockchain analysis. Demand letters, temporary restraining orders, and civil forfeiture actions are all tools available to victims.

Federal Forfeiture Claims

When law enforcement seizes cryptocurrency tied to pig butchering operations, victims may be able to file claims to recover a portion of those seized assets. In October 2025, U.S. authorities seized approximately $15 billion in Bitcoin connected to a massive pig butchering network based in Cambodia. The DOJ’s Scam Center Strike Force has seized over $400 million. These forfeiture proceedings require timely filing and proper documentation, which is where having a crypto attorney becomes essential.

Blockchain Tracing and Exchange Cooperation

Using blockchain analytics tools, a crypto lawyer can work with forensic specialists to trace the path your funds took after leaving your wallet. If the funds passed through regulated exchanges, your attorney can send KYC/AML letters and preservation requests demanding that the exchange freeze associated accounts and provide information about the recipients. In some cases, this process has led to direct recovery of stolen funds.

Coordination with Law Enforcement

The FBI’s Operation Level Up identified over 4,300 potential victims and prevented an estimated $285 million in losses between January 2024 and January 2025. The newly established Scam Center Strike Force is actively investigating and prosecuting pig butchering operations. A crypto attorney can help coordinate your case with these federal efforts, ensuring your evidence is properly organized and submitted to the right agencies.

Tax Relief for Victims

A 2025 IRS Chief Counsel memorandum confirmed that victims of investment-based pig butchering scams may qualify for a theft-loss deduction under Internal Revenue Code §165(c)(2), provided the loss arose from a transaction entered into with the genuine intent of earning a profit. This deduction can significantly reduce your tax burden for the year the loss was discovered. A tax attorney or crypto lawyer can help you determine whether this deduction applies to your situation and prepare the necessary documentation.

Beware of Recovery Scams

After a pig butchering scam, many victims are targeted a second time by fraudsters posing as “crypto recovery specialists.” These recovery scams are widespread and specifically target people who have already lost money. Watch for these red flags.

Guaranteed recovery. No one can guarantee they will recover your cryptocurrency. Any person or company that promises a specific outcome is likely running a scam.
Upfront fees. Legitimate law firms typically work on contingency or clearly disclosed fee structures. Demands for large upfront payments, especially in cryptocurrency, are a major warning sign.
Unsolicited outreach. If someone contacts you on social media, Telegram, or by email claiming they can recover your funds, treat it as a scam. Real attorneys do not cold-message victims on messaging platforms.
“Blockchain unlock” or “mining” fees. There is no such thing as a blockchain unlock fee. This is pure fabrication designed to extract more money from you.
No verifiable credentials. Always verify that your attorney is a licensed member of their state bar. You can check bar membership through your state bar association’s website.

How Murphy’s Law Can Help

Murphy’s Law is a first-of-its-kind crypto law firm founded by Liam Murphy, Esq., a University of Pennsylvania Law School graduate who built his litigation career at three prominent New York City law firms before dedicating his practice entirely to cryptocurrency law.

At Selendy Gay, a boutique firm founded by leading Quinn Emanuel partners, Liam drafted complaints against crypto fraudsters, including Terraform Labs, and represented the liquidators of the Bernard L. Madoff Ponzi scheme. At Paul Hastings, he aided three white-collar defense acquittals and defended DeFi and NFT companies from government scrutiny. At McKool Smith, he represented the Celsius trust in post-bankruptcy litigation.

For pig butchering victims, Murphy’s Law provides:

A thorough case evaluation to assess the viability of your claim and identify all potential recovery paths
Blockchain tracing in coordination with forensic specialists to map where your funds went after leaving your wallet
Demand letters and exchange outreach to regulated platforms that handled your stolen assets, requesting account freezes and disclosure of recipient information
Civil litigation against identifiable parties, including exchanges that failed to meet their legal obligations
Federal forfeiture claim assistance to ensure you are positioned to recover from assets seized by law enforcement
Coordination with federal agencies including the FBI, DOJ, and U.S. Secret Service to connect your case with ongoing enforcement actions

Frequently Asked Questions About Pig Butchering Scam Recovery

Can I actually get my money back from a pig butchering scam?

Recovery is possible but not guaranteed. Your chances depend on how quickly you act, where your funds were sent, whether they passed through regulated exchanges, and whether law enforcement has seized assets connected to the scheme. A crypto lawyer can evaluate your specific situation and explain which recovery options apply to your case.

How do I report a pig butchering scam?

File a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov. You should also report to the U.S. Secret Service at [email protected], notify your bank and any exchanges involved, and file a report with your local police department. Each report creates a record that supports investigation and potential recovery.

How long does pig butchering scam recovery take?

Timelines vary significantly. Emergency asset freezes can sometimes be initiated within days. Civil litigation may take months. Federal forfeiture proceedings can extend over a year or more. The critical point is that acting quickly improves your options at every stage.

I am embarrassed about being scammed. Should I still report it?

Absolutely. Pig butchering scams are run by organized crime syndicates using psychologically sophisticated manipulation tactics. A Kansas bank CEO with decades of financial experience was convicted of embezzling $47 million from his own bank after falling for one of these schemes. These scams are designed to exploit human trust regardless of intelligence or experience. Reporting is essential for your own recovery and for protecting others.

Can I deduct my pig butchering losses on my taxes?

In many cases, yes. A 2025 IRS Chief Counsel memorandum confirmed that investment-based pig butchering scam losses may qualify for a theft-loss deduction under IRC §165(c)(2). You should consult a crypto lawyer or tax attorney to determine eligibility and ensure proper documentation.

Does Murphy’s Law offer free consultations for pig butchering victims?

Yes. Murphy’s Law offers free initial consultations. Contact Liam Murphy directly through murphyslawcrypto.com to discuss your case and explore your legal options.

Have You Been the Victim of a Pig Butchering Scam?

Time is the most important factor in crypto fraud recovery. The sooner you act, the more options you have. Murphy’s Law is here to help victims of pig butchering and other cryptocurrency scams pursue every available path to recovery.

Contact Liam Murphy today for a free consultation or call 913-575-0540.