Pig butchering is a scam that combines a romance scamRomance scamA scam where someone builds an online romance, often over months, to get the victim to send money or crypto. with an investment scamInvestment scamA scam that promises big, safe returns on an investment, often in crypto, while the scammers simply take the money paid in.. The scammer builds trust online, often over weeks or months, and then gets the victim to invest in crypto on a fake website. The name is a translation of the Chinese term shā zhū pán. It refers to fattening a pig before it is slaughtered, and the scammers themselves call their victims pigs.
How does it work?
- First contact. A message arrives on social media, a dating app or by text, often as if it had gone to the wrong number.
- Building trust. The scammer chats every day, takes an interest in your life and builds a friendship or romance. They don't ask for money.
- The opportunity. The scammer says they have made good money from crypto and offers to teach you. You are directed to a website or app that looks like a real crypto exchange.
- Fattening. The first deposits seem to make big profits, and sometimes a small withdrawal is allowed. That builds trust, and the victim puts in more.
- The slaughter. When it's time to withdraw everything, a "tax" or "fee" is demanded first. Then the scammer disappears, and so does the money.
Who is behind it?
These scams are often run by organised crime groups in Southeast Asia. In 2023 the UN human rights office estimated that at least 120,000 people in Myanmar and around 100,000 in Cambodia were being forced to work in online scams. Many of the people writing the messages are themselves victims of human trafficking.
The losses are huge. According to the FBI, Americans lost 7.2 billion dollars to crypto investment fraud in 2025, more than in any other category of online fraud.
How do you protect yourself?
- Treat unexpected messages from strangers with caution, especially if they seem to have arrived "by mistake".
- Never invest on a platform recommended by someone you have only met online.
- Check whether the service is licensed. Since 1 July 2026, only providers licensed under MiCA may offer crypto-asset services in Iceland.
- If you have to pay a fee to get your own money out, it is a scam.
If you have been scammed, contact your bank and report it to the police. Then watch out for recovery scamsRecovery scamA scam aimed at people who have already been scammed. The scammer offers to recover the money for a fee, but only takes more., which often follow.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 2 November 2026.