Bitcoin Investor Loses Retirement Savings to Romance Scam
- A Bitcoin investor lost retirement savings after sending holdings to a fake trader online.
- Emotional manipulation, not hacking, drove the pig butchering scam despite adviser warnings.
- Pig butchering scams caused $5.5 billion in crypto losses in 2024, with over 200,000 cases.
A Bitcoin (BTC) investor lost his entire retirement savings after sending his holdings to a scammer posing as a trader. The transfer occurred despite repeated warnings from his advisory firm. The case was shared publicly by a Bitcoin wealth adviser. The incident highlights how social engineering scams continue to affect long-term Bitcoin holders.
The account was disclosed by Terence Michael, an adviser and author associated with The Bitcoin Adviser. He said the client moved his Bitcoin after being promised a return that would double his holdings. The scammer claimed to be an experienced trader. The offer was presented as a low-risk opportunity.
Romance-Based Bitcoin Scam Escalates Despite Adviser Warnings
Michael said the attacker also pretended to be a woman who had developed romantic feelings for the investor. This method aligns with pig butchering scams, which rely on emotional manipulation. These schemes avoid technical hacks. Victims are persuaded to act on their own.
The adviser stated that he attempted to stop the transfer several times. He made numerous phone calls. He also sent multiple text messages. The warnings did not change the client’s decision.
Michael said the loss became clear during a personal moment. While out to dinner, he received a text from the client. The message confirmed that the Bitcoin had been sent. The funds were no longer accessible.
The investor had recently gone through a divorce. According to Michael, this made him more vulnerable to emotional pressure. He believed he was forming a real relationship. He even purchased a plane ticket to meet the woman he thought he knew.
After the Bitcoin was transferred, the scammer revealed the truth. The attacker admitted that the photos used were fake. Michael said the images were created using artificial intelligence tools. The communication ended soon after.
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Authorities Flag Rising Scam Risks as Losses Grow
Pig butchering scams have grown into a major issue for Bitcoin and crypto holders. Industry data estimates losses of $5.5 billion in 2024 alone. Around 200,000 individual cases were recorded. Experts believe many incidents go unreported.
Blockchain security firm Cyvers has studied these schemes. It found that 35% of victims are groomed for one to two weeks. About 10% remain engaged for up to three months. Longer grooming often leads to higher losses.
The threat has drawn concern from security and law enforcement officials. In a November podcast, Chainalysis’s head of national security intelligence, Andrew Fierman, discussed the issue. He spoke alongside former prosecutor Erin West. West is the founder of anti-scam nonprofit Operation Shamrock.
West said pig butchering is no longer a niche crime. She warned that anyone involved in financial systems is affected. She stressed the importance of education. Awareness remains a key defense against these scams.
Pig butchering follows a structured fraud model. Criminals first build trust through friendship or romance. Victims are later guided toward fake investment opportunities. Bitcoin is then transferred directly to the attackers.
Fierman warned that victims often face continued risk. Once defrauded, individuals may be placed on targeting lists. This increases the chance of future scam attempts. Repeated contact is common.
U.S. authorities have begun to increase enforcement actions. In June, the Department of Justice announced a major seizure. More than $225 million in cryptocurrency was linked to pig butchering schemes. A civil forfeiture complaint was filed against the assets.
The DOJ said the seized funds were tied to money laundering. The cryptocurrency came from fraudulent investment operations. Officials emphasized that recovery remains difficult once Bitcoin is transferred. The case underscores the lasting impact of social engineering scams on investors.
