They say love makes you do crazy things—like sending your retirement savings to two complete strangers running a fake crypto platform out of their Texas home.
In this publication, we're uncovering a high-stakes scam that’s left over 120 victims across the U.S. (and beyond) reeling. Let’s dive right in.
A Chinese couple used a romance-investment hybrid scam called “pig butchering” to steal $9.5 million from victims, before fleeing the U.S. with their kids—and leaving behind millions in crypto.
How It Works:
The scam, known as pig butchering, combines emotional manipulation with financial fraud:
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Build the Relationship:
The scammers, Feng Chen and Tianqiong Xu, infiltrated Chinese-language investing forums and slowly gained trust—sometimes even posing as friends or romantic interests. -
Fake the Investment:
Victims were shown fraudulent apps and reports that claimed their investments in cryptocurrency were growing steadily. -
Keep the Illusion Alive:
Regular updates and fabricated success stories kept victims hooked, often leading them to invest more. -
Cash Out and Vanish:
The couple funneled all the money into their own crypto wallets. After the FBI searched their Texas home in 2023, they got emergency passports from the Chinese consulate and fled with their children—just days before they could be arrested.
Who’s Targeted:
- Individuals of Chinese descent across the U.S., often found in Chinese-language chat groups or social media forums
- Older adults and professionals looking for safe or lucrative investments
- Retirees, including at least one Vermont resident who lost $600,000
Real-Life Example:
One Vermont victim trusted the scheme enough to liquidate their retirement savings and transfer $600,000 to what they believed was a growing crypto investment. Like dozens of others, they received fake reports showing increasing profits—until it all vanished.
The FBI says Chen, a petroleum engineer with degrees from Wyoming and Louisiana, used his tech skills to build convincing apps and chatbots to execute the scam.
Why You Should Care:
This isn’t just another headline—this scam could hit anyone who uses social media, joins online communities, or has ever considered crypto. What makes it especially dangerous is the mix of emotional trust and technical deceit. Once the money is gone, recovering it—especially across borders—is nearly impossible.
With the rise of crypto-related fraud (over $5.6 billion in 2023 alone, per the FBI), scams like this are only becoming more sophisticated.
How to Protect Yourself:
• Be Skeptical of Online “Experts”
Anyone promising investment advice or opportunities through DMs or group chats should raise red flags—especially if it sounds too good to be true.
• Verify the Platform
Never invest through apps or websites sent by strangers. Use well-known, regulated platforms and check if they’re registered with the SEC or FINRA.
• Watch for Emotional Manipulation
If someone is getting unusually close and then talking about investments, pause. Scammers often play the long game.
• Never Send Money Without Independent Verification
If you're transferring funds—especially large sums—confirm the company or person with a third party you trust.
• Report Suspicions Early
If something feels off, report it to the FTC, FBI, or IC3.gov. Early reporting can help track funds and protect others.
Quick Tips & Updates:
Quick Tip #1: Did you know? “Pig butchering” scams are now among the fastest-growing types of fraud worldwide, especially targeting communities in their native languages.
Pro Tip: Always assume any “investment opportunity” introduced online needs independent verification—even if the person seems trustworthy or familiar.
Stay safe, stay informed.
Keywords:
• Pig Butchering – A scam in which fraudsters emotionally groom victims over time before stealing their money, often through fake investment schemes.
• Crypto Fraud – Fraudulent schemes involving cryptocurrency, often unregulated and difficult to trace.
• Wire Fraud – A federal crime involving deceptive electronic communications to steal money.
• Investment Scam – A promise of high returns with little risk, often used to lure victims into fraudulent platforms.
• Phishing Apps – Fake mobile apps that mimic real ones to steal funds or personal information.
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