Key conclusions

• Unlike phishing attacks that quickly defraud victims, pig slaughter scams build long-term emotional trust before introducing the possibility of fraudulent cryptocurrency investments.

• From casual contact and relationship building to false profits, escalated deposits and blocked withdrawals, each step is carefully designed to deepen engagement.

• In January 2026 alone, blockchain security company CertiK recorded $370.3 million in fraud-related losses, with the majority being social engineering tactics.

• Authorities are targeting fraud networks and money laundering operations, but cross-border jurisdictional issues and encrypted communications complicate the crackdown.

Pig slaughter scams involve a long-term, methodical approach in which fraudsters establish trust in their targets and then exploit it for monetary gain. Over the past few years, such programs have spread across the cryptocurrency sector, leaving investors concerned about losing their funds. These scams have changed the way regulators and law enforcement view crime involving cryptocurrencies.

This article examines how cryptocurrency pig slaughter scams manipulate victims by building long-term relationships and exploiting emotional trust using fabricated investment platforms. It explains the psychological tactics used by fraudsters, how funds are extracted over time, and why these schemes have become one of the fastest-growing global cryptocurrency fraud models.

Definition of pig slaughter fraud

Pig robbery comes from the Chinese expression “Sha Zhu Lord“, which refers to grooming a target, such as cattle, before slaughter. When applied to fraud, this means that fraudsters establish deep personal connections over an extended period of time. They then trick victims into sending funds to a fraudulent digital currency venture.

While typical phishing tactics rely on urgency and alarm, pig slaughter scams rely on persuasion and persistence. Fraudsters assume the role of a fiduciary, advisor or financial consultant, methodically building trust before implementing the plan.

Did you know? Some victims interact with fraudsters months before making an investment, making pig robbery one of the longest-running and most emotionally manipulative forms of financial fraud on the Internet.

Breaking the fraud process

Understanding each step of the pig slaughter scam reveals how emotional manipulation and financial fraud intertwine to trap victims:

• First reach: Perpetrators typically contact victims through dating platforms, professional networks such as LinkedIn, social media such as Instagram, instant messaging such as Telegram, or unsolicited text messages. The introductory message is intended to reduce suspicion and often appears random or ordinary.

• Supporting Connection: Over the following days or weeks, the scammer cultivates a bond with the victim by sharing “fabricated” anecdotes, routine details, and “professional” achievements. Many scammers pose as successful digital asset traders and financial experts.

• Revealing the possibilities: Eventually, scammers turn the conversation to investing. They claim to know a high-yield cryptocurrency trading strategy or have access to insider knowledge or a private investment platform. They show victims screenshots of fraudulent profits and direct them to professional-looking fraudulent websites.

• Early modest gains: Scammers encourage individuals to start with minimal investments. The system can display quick “earnings” to build trust. Sometimes, scammers allow miniature payouts to make the platform appear legitimate.

• Intensification: As the victim’s trust in the scammers increases, he or she is encouraged to invest larger amounts. Fraudsters may advise victims to take out a bank loan, withdraw their savings or even borrow from friends.

• Blocked withdrawals and exit: When victims try to recover the “deposited amount”, the system blocks access and demands additional “fees”. Then the scammers disappear.

Did you know? Law enforcement agencies in the U.S. and Europe have begun freezing crypto wallets linked to pig slaughter rings, sometimes recovering some of the funds through coordinated blockchain tracing efforts.

Using trust as a psychological weapon

The main distinguishing feature of pig slaughter frauds is their reliance psychological and emotional abuse. Fraudsters exploit security vulnerabilities such as:

• Feeling isolated or having a robust need for connection and affection

• Economic difficulties combined with the hope of quickly becoming affluent

• Authority bias, which refers to the tendency to rely on perceived experts

• Trust the obvious evidence of success.

Perpetrators deliberately spend time in the build-up phase rather than insisting on quick action. A longer period of interaction deepens the victim’s sense of attachment and loyalty. When the time comes to send money, many victims truly feel they are working with a reliable ally or close companion.

The emotional layer complicates the path to recovery, both financially and mentally.

Did you know? Pig buster exploits run through convoluted laundering chains spanning multiple wallets, cross-chain bridges and over-the-counter (OTC) brokers before withdrawing funds.

Assessment of the scale of the problem

Cryptocurrency scams have skyrocketed recently. According to blockchain security firm CertiK, fraudsters stole In January 2026 alone, it amounted to $370.3 million, which is the largest sum in a single month in almost a year. Of that amount, about $311 million was attributed to phishing and social engineering, a category that often includes pig slaughter operations.

This escalate comes after significant cryptocurrency security breaches in 2025, most notably the Bybit exchange hack in February, which contributed to overall losses of $1.5 billion during the period.

Significant court decisions further demonstrate the scale of these crimes. In early 2026, Daren Li, a dual citizen of China and St. Kitts and Nevis, received 20-year-old a federal prison sentence in the US for running a immense cryptocurrency fraud network. According to prosecutors, as a result of his actions, victims were defrauded of over $73 million, and his accomplices created fraudulent websites and used front companies.

Dimensions of cryptocurrency fraud

Trading digital currencies does not always result in fraud. However, cryptocurrency trading has its own unique dynamics.

• Speed ​​and finality: Once confirmed, crypto transactions become eternal. Unlike card payments, no central authority can reverse the transfer of funds.

• Global reach: Fraudsters often operate in networks that span national borders. Crypto enables seamless cross-border transfers independent of conventional finance.

• Convincing interfaces: Scam websites have become more sophisticated. Like legitimate platforms, they may include active pricing, user dashboards, and support features.

• Obfuscation using stablecoins and decentralized finance: To cover the funds involved in these scams, assets are often converted to stablecoins or routed through decentralized systems.

While blockchain transparency helps investigators, stolen assets can pass through the address chain before an investigation begins.

Countermeasures to reduce pig slaughter fraud

Security agencies have taken steps to stop pig slaughter scams, which can be devastating for victims. Entities such as the U.S. Secret Service and the Department of Homeland Security are strengthening collaborative efforts through financial crime units.

Recent cases show that investigative agencies are not only going after individual fraudsters, but also money laundering networks and shell companies that facilitate the flow of funds. However, law enforcement presents several challenges:

• Jurisdictional complexity

• Using encrypted communication

• Fraudsters operating in loosely regulated regions

• Reports of forced labor in some fraud centers in Southeast Asia.

The global nature of these operations requires a coordinated international response.

Red flags to watch out for

Awareness remains the first line of defense against fraudulent activities. Common warning signs include:

• Unsolicited investment advice from friends online

• Pressure to move conversations away from main apps

• Guarantee of constant high profits with low risk

• Requests to deposit cryptocurrencies on unknown platforms

• Requesting “tax” or “unlocking” fees before withdrawals.

Before you invest in any platform, check with independent sources whether it is reliable.