A Bitcoin investor lost his entire retirement nest egg after falling for a “pig butchering” scam — despite repeated warnings from his advisory firm, according to Terence Michael, an adviser and author with The Bitcoin Adviser. Michael posted on X that an unidentified client moved his Bitcoin to an individual who posed as a trader promising to double the holdings. The scammer also claimed to be a woman romantically interested in the investor — a hallmark tactic of pig butchering schemes, which focus on emotional manipulation rather than technical hacks. Michael said he placed “numerous phone calls” and sent a “string of text messages” trying to stop the client, but the investor went ahead anyway. The adviser received a “devastating text message” while out to dinner confirming the client had “lost it all.” The investor — recently divorced — not only transferred his retirement Bitcoin but also purchased a plane ticket to meet the fake romantic partner. After the funds were sent, the attacker admitted the photos used in the relationship were fabricated using artificial intelligence, Michael said. Why pig butchering is so dangerous - These scams groom victims into willingly sending funds by building trust and romance, then promising outsized returns or other incentives. - They are not the result of a hack; victims are persuaded to transfer assets themselves. - According to blockchain security firm Cyvers, grooming periods last one to two weeks in 35% of cases and extend up to three months in 10% of incidents. The broader toll - Pig butchering scams cost the crypto industry an estimated $5.5 billion in 2024 across roughly 200,000 individual cases. - Chainalysis has warned that these schemes are becoming a national security concern; Andrew Fierman, head of national security intelligence at Chainalysis, warned on a November 2025 podcast that victims are often targeted again after being scammed. - In June, the U.S. Department of Justice announced seizures of more than $225 million in crypto connected to pig butchering operations. What this episode underscores is how social engineering and AI-augmented deception are evolving risks for crypto holders. Advisors can warn and counsel, but ultimately investors can still be persuaded to act against better judgment. Quick reminders for readers: be highly skeptical of anyone promising guaranteed returns, verify identities independently, never rush transfers under emotional pressure, and consult trusted advisors or law enforcement if you suspect a scam. Read more AI-generated news on: undefined/news

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