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Chinese Crypto-forex Scam: 'Slaughtering a Pig or Pig Butchering Scam'


There was a lot of talk about scams and how international legal teams came across a variety of particularly insidious fraud schemes related to cryptocurrencies and forex. I would like to pay attention to one of these fraud schemes, known as "Sha Zhu Pan" (Chinese: 杀猪盘), which means "slaughtering a pig".

Usually, victims of this fraud turn to law firms to specialists with problems about how they fell into the trap of "slaughtering a pig." Sha Zhu Pan is one of the most insidious fraud schemes that have recently become a real scourge for many people around the world. This fraudulent scheme got its name because of the analogy with the process of fattening pigs for subsequent slaughter: scammers "feed" their victims, gaining their trust and gradually involving them in their machinations before striking a decisive blow.

The main purpose of "slaughtering a pig" is to extort as much money from the victim as possible. The scheme begins with the fact that scammers get to know a potential victim through social networks, dating apps or messengers. In one of the typical cases that victims often talk about: 


"I met a man on a dating app. This person suggested that we continue communicating on WhatsApp. Our relationship developed rapidly: we shared personal stories and life experiences. After a while, this man casually mentioned the incredible returns he had received from his investments and invited me to join this lucrative opportunity related to forex (foreign exchange) and cryptocurrencies."


At this stage, the fraudster has already gained the trust of the victim and begins to "fatten" her, showing her an imaginary profit from the initial small investments. This creates an illusion of security and reality for the victim. 


"After careful study and initial testing of investment opportunities, I saw a significant profit from my first investments. It seemed legitimate to me, and I decided to invest more money in this company. I was told that if I deposited more money, I would become a VIP member and be able to make even more profit, which I did."


The victim falls into a trap, increasing his investments more and more, in the hope of high profits. At some point, the scammers stop showing any profit and begin to put forward additional requirements for the possibility of withdrawing funds.


"Later, when I tried to withdraw my funds from the investment account, a support representative informed me that I had to pay capital gains tax or that my account was frozen due to suspicions of money laundering. The representative assured me that after paying the additional amounts, I would be able to withdraw all my money and profits. I transferred significant amounts of money and cryptocurrencies again, but I never got access to the funds. Right now, the support representative is not responding to my messages, and the person who originally introduced me to the investment has also disappeared."


This leads to the victim losing all their invested money and being left in complete despair, not knowing how to get their funds back. Unfortunately, such schemes are international, which complicates the process of investigating and returning stolen money.

Examples of such cases highlight the importance of a cautious approach to investments, especially when they are offered by strangers on the Internet. Financial literacy and healthy skepticism can save many from losing significant amounts of money. It should always be remembered that high incomes with minimal risks are often a sign of fraud.

Law firms and international anti-fraud teams play an important role in helping victims of such schemes. They not only help to recover lost money, but also work to prevent the further spread of such schemes by training people to be more attentive and careful in their investment decisions.


The essence of the "Pig Slaughter" scam


The name "Pig Slaughter" was assigned to this scam because of the analogy with the process of fattening pigs before slaughter. Victims, like pigs, are fattened by scammers for several months before they receive significant amounts of money from them. Criminals maintain daily contact with the target, creating the illusion of trust and security, as if they are "feeding" her until the moment of "slaughter". Scammers, using fake profiles of attractive Asian men or women, involve the victim in elaborate communication scenarios. This scheme is designed for a long time so that the victim feels strong emotional attachment and trust.

When the victim makes the first contribution to the so-called investment, the scammers show her an impressive profit on a fake account. This can be done through fake investment platforms that look convincing and professional. Sometimes the victim is even allowed to withdraw a small amount to build trust and convince her of the legitimacy of the transaction. This small withdrawal creates a false sense of security for the victim and a belief that the investment is really working.

After that, the victim is persuaded to invest even more money to maximize profits. Scammers often come up with various reasons to increase investments, such as special promotions, unique investment opportunities or upgrading to VIP client status, which, according to them, will bring even greater profits. The victim, misled, continues to invest more and more funds, hoping for high returns and trusting his "friends" or "lovers".

Eventually, when the criminals collect enough money, they stop all communication, leaving the victim without investments and promised profits. The victim finds himself in complete despair, realizing that he has lost all his funds. At this stage, the scammers have already disappeared, and any attempts to contact them are unsuccessful.

This fraud scheme is particularly insidious and successful for several reasons. First, the amounts stolen from each victim can range from $10,000 to $2,000,000 or more. Secondly, the scale of such scams is huge. For example, a well-known lawyer recently lost more than $5 million in this scam and decided not to make claims, fearing that publicity would harm his professional reputation. This shows how effective these fraudulent schemes can be and how they can affect even the most educated and experienced people.


Between January and July 2021, the FBI received about 2,000 complaints about Sha Zhu Pan's cryptocurrency-related fraud. However, according to experts, the actual number of cases is much higher. Many victims do not contact law enforcement agencies, fearing public condemnation or simply not believing that they will be able to get their money back.

The police in China do not attach much importance to this, as they have priority tasks, and they are not inclined to help American and European citizens who often become victims. Police in other countries, such as the United States and European states, also face a high workload and cannot always pay due attention to these cases. In addition, such frauds are often transnational in nature, which makes it difficult to investigate and apprehend criminals.

International legal teams face many difficulties in dealing with this scheme. They should not only identify fraudsters and try to recover stolen funds, but also provide support to victims who are often in a difficult emotional and financial condition. It is also important to raise public awareness of such schemes in order to prevent the further spread of fraud.


This scam scheme highlights the need to be extremely careful when interacting with strangers on the Internet, especially when it comes to investments. Financial literacy and a skeptical approach to offers that are too good to be true can save many from losing significant amounts of money. It should always be remembered that a high income with minimal risks is often a sign of fraud.



What should you do if you become a victim of such a scam?


If you have become a victim of a scam called "Pig Slaughtering", it is important to immediately take certain steps to minimize losses and increase the chances of a refund of your funds. First of all, despite possible delays, it is always useful to report the incident to law enforcement agencies. In the United States, this is done by filing a complaint with the FBI's Internet Crime Complaint Center (IC3). Such complaints help law enforcement agencies collect fraud data, which can be useful for tax issues and/or insurance payments, and also increases the chances of a refund from the bank to which the money was transferred to the fraudsters. The time to submit such a report is of key importance and depends on other actions taken to restore it.


Law firms have international litigation teams that take on many similar cases (they usually work on two or three such cases at the same time). Therefore, they know that it is possible to return some or even all of the lost funds (without the "profit" promised by the scammers). When lawyers receive such a case, they begin by conducting a basic investigation to see if there is a real chance of a refund. If they can track bank transfers or cryptocurrency transactions to a bank account or a cryptocurrency exchange in a country with reliable legislation – for example, in Singapore, Australia or Hong Kong (which firms have already encountered) – they then develop an action strategy to help their customers get their money back.

Each case is unique and depends on many factors: the amount of loss, the countries and nationalities involved, as well as the current state of fraud. Law firms start with a thorough analysis of the situation, collecting all possible information about transactions related to fraud. They use their contacts and knowledge of international legal norms to track funds. If the money was transferred to an account in a country with a reliable legal system, they have a better chance of a successful refund.


After analyzing the situation, law firms can take various measures. For example, they can file lawsuits against banks or cryptocurrency exchanges to freeze the accounts to which the funds were transferred and begin the process of returning them. In some cases, cooperation with local law enforcement agencies is possible, which can assist in the investigation and return of money. Law firms can also use their connections and expertise to pressure financial institutions to facilitate refunds.

Although each case is unique and requires an individual approach, the overall strategy of law firms is to act quickly and decisively. It is important to understand that the refund process can take time and require considerable effort, but with the right approach, the chances of success increase significantly. It is important to remember that if you are a victim of fraud, you should not give up. The struggle to get your money back requires perseverance and determination. Law firms and international litigation groups have experience in such cases and can help you deal with this difficult situation. Despite the fact that the process can be long and difficult, it is important to continue to fight for your rights and funds.


Conclusions: be careful and do not allow yourself to become a victim of such fraud. But if this has already happened, do not give up and continue to fight for the return of your funds. The support of professionals and your insistence on justice can lead to a successful outcome and a refund of your money.


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