Guide · Last checked 12 October 2026

Pig butchering, explained.

The short answer

“Pig butchering” is a scam in which a stranger, met by text, on social media or a dating app, builds a friendship or romance and then steers the victim into a fake crypto investment platform. Early “gains” appear, the victim puts in more, and when they try to withdraw they are told to pay taxes or fees first. The money is gone. FinCEN now calls it a digital asset investment scam.

It is the costliest crime the FBI’s Internet Crime Complaint Center tracks: crypto investment fraud accounted for 61,559 complaints and about $7.2 billion in reported losses in 2025. If it is happening to you, stop sending money, pay no fee to withdraw, and report at ic3.gov.

General information, not legal advice. Checked against the primary sources listed at the foot of this page on 12 October 2026. Rules change; confirm against the source before you rely on it.

How it works

  1. The contactA message out of nowhere: a wrong number, a dating match, a social media follow, a professional contact. Friendly, patient, often for weeks.
  2. The relationshipTrust first, money later. The scammer shares a life story and, eventually, how well their investing is going.
  3. The platformAn introduction to a crypto trading site or app that looks real. It may be a look-alike or newly registered domain, or an app installed from outside the official app stores.
  4. The gainsThe account shows strong returns. A small early withdrawal may even work, to build confidence. The victim is encouraged to put in more, sometimes by cashing in savings early or borrowing against their home.
  5. The blockA large withdrawal is refused until the victim pays “taxes”, “fees” or “penalties”. Paying them releases nothing.

FinCEN’s 2023 alert describes the scams as largely run by criminal groups in Southeast Asia using trafficked workers, and the name comes from the scammers’ own term for fattening a victim before the “butchering”. In September 2026 FinCEN said it uses the term “digital asset investment scam” instead.

The warning signs

  • A new online contact brings up investing. Especially one you have never met in person.
  • You are told to buy crypto and send it to an address they give you, or to use a crypto ATM to do it.
  • Returns that look too good, and pressure to add more before a deadline.
  • A fee or tax to withdraw. The FBI’s advice is plain: do not pay any additional fees or taxes to withdraw your money.
  • An unfamiliar site or app. Misspellings, a look-alike web address, support only by chat, an app from outside the app stores.
  • Money moves you would not normally make. Cashing in certificates of deposit early, borrowing against your home, or sending money to companies you do not know.

What to do

  1. Stop sending moneyIncluding any fee to withdraw. It will not bring the money back.
  2. Report to IC3At ic3.gov, with the names and handles used, the platforms and apps, bank accounts, wallet addresses, transaction details and screenshots. See our guide to what to do when crypto is stolen.
  3. Call your bank and the exchange you usedTell them it is fraud and ask what they can stop.
  4. Keep everythingMessages, screenshots, the site address, receipts.
  5. Be ready for the second scamPeople who lose money are targeted again by fake recovery services and people posing as the FBI or IC3. IC3 says it never asks for payment to recover funds.

For someone aged 60 or over, the Justice Department’s National Elder Fraud Hotline is 833-FRAUD-11 (833-372-8311).

The FBI’s Operation Level Up, running since January 2024, contacts people it identifies as current victims of crypto investment fraud; in 2025 it notified 3,780, and 78 percent did not know they were being scammed. If someone says they are from the FBI, check by calling your local FBI field office on the number published at fbi.gov, not a number they give you.

We sell nothing to victims. BSJ Ventures does not offer recovery, does not trace funds and does not charge victims for anything. This guide is free.

Questions people ask

What is a pig butchering scam?
A scam in which a stranger met online builds a friendship or romance, then steers the victim into a fake crypto investment platform that shows false gains. When the victim tries to withdraw, they are told to pay taxes or fees first, and the money is lost. FinCEN now calls it a digital asset investment scam.
How much do people lose to crypto investment scams?
The FBI's Internet Crime Complaint Center recorded 61,559 complaints of cryptocurrency investment fraud with about $7.2 billion in reported losses in 2025, the highest of any crime type it tracks.
Should I pay the fee to withdraw my money?
No. The FBI advises that if you have already invested, do not pay any additional fees or taxes to withdraw your money. Paying them does not release the funds.
Where do I report a pig butchering scam?
Report it to the FBI's Internet Crime Complaint Center at ic3.gov, with the contacts, platforms, bank accounts, wallet addresses, transaction details and screenshots. Also tell your bank and the crypto exchange you used.
Why does FinCEN no longer say pig butchering?
In its alert of 3 September 2026 on digital asset investment scam centres, FinCEN said it has elected to use the term 'digital asset investment scam', citing INTERPOL's call to stop using 'pig butchering'.

Primary sources

General information, not legal advice. BSJ Ventures publishes methods; it never publishes clients, cases or verdicts, and it claims no relationship with any agency or maker named here.

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