Crypto Journalist
Amin Ayan
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A Bitcoin investor lost his retirement savings after falling victim to a so-called “pig butchering” scam, despite repeated warnings from his advisory firm, according to a firsthand account shared by a Bitcoin wealth adviser.
Key Takeaways:
- A Bitcoin investor lost his retirement savings after ignoring warnings and sending funds to a romance scammer.
- Pig butchering scams use emotional manipulation and fake identities, including AI-generated images, to lure victims.
- The scams are surging, costing victims $5.5 billion in 2024 and drawing increased law enforcement action.
Terence Michael, an author and adviser affiliated with The Bitcoin Adviser, said an unnamed client transferred his Bitcoin holdings to a scammer after being approached online by a woman posing as a trader.
The woman promised to double his Bitcoin and gradually built what appeared to be a romantic relationship, a hallmark tactic of pig butchering scams.
Bitcoin Adviser Says Client Ignored Warnings, Lost Funds to Scam
In a post shared on X, Michael said he made “numerous phone calls” and sent a “string of text messages” in an effort to stop the transfer.
The warnings went unheeded. While Michael was out to dinner, he received a message from the client confirming that the funds were gone.
“My client was falling for a pig butchering scam,” Michael wrote. “And as of last night … I received a devastating text message from him saying he had lost it all.”
Unlike traditional cyberattacks that rely on malware or direct wallet compromises, pig butchering scams depend on emotional manipulation.
Victims are convinced to willingly send their assets, often after being groomed through days or weeks of conversation that blend investment advice with personal and romantic claims.
Michael said the client, who had recently divorced, went beyond sending Bitcoin. He also purchased a plane ticket for the scammer, expecting to meet her in person.
After the transfer was completed, the attacker reportedly admitted that the photos used throughout the relationship were fake and generated using artificial intelligence tools.
The case highlights the growing scale of pig butchering scams across the crypto industry. In 2024 alone, these schemes drained an estimated $5.5 billion from victims across roughly 200,000 reported cases, according to industry data.
In June, the US Department of Justice announced the seizure of more than $225 million in cryptocurrency tied to pig butchering operations, underscoring the growing enforcement response to one of crypto’s most damaging fraud trends.
AI-Driven Crypto Scams Hit $4.6B as Deepfakes Fuel New Fraud Wave
As reported, the rapid adoption of artificial intelligence is driving a new generation of crypto scams, pushing global losses to $4.6 billion in 2024, according to a 2025 Anti-Scam Research Report released on June 10.
The study, co-authored by Bitget, SlowMist, and Elliptic, found that scammers are increasingly using AI-generated deepfakes, fake video calls, and Trojan-infected job offers to deceive victims, with at least 87 AI-powered scam rings dismantled in the first quarter of 2025 alone.
The report warns that deepfake impersonations, social engineering, and Ponzi schemes disguised as DeFi or NFT projects now dominate the threat landscape.
Criminal groups are also using cross-chain bridges and obfuscation tools to launder stolen funds, complicating recovery efforts.
