A Bitcoin investor lost his entire retirement stash to a “pig butchering” scam after ignoring repeated warnings from his adviser, according to an account shared by a Bitcoin wealth professional. Terence Michael, an adviser and author with The Bitcoin Adviser, posted on X that an unidentified client transferred his Bitcoin to a scammer who posed as both a trader promising to double the holdings and as a romantic partner. Michael said he made “numerous phone calls” and sent a “string of text messages” trying to stop the client, but received a devastating message while out to dinner confirming the funds were gone. “This was a pig butchering scam,” Michael wrote. Unlike a direct hack, these schemes groom victims through emotional manipulation and false financial promises so they willingly send funds to the attackers. Michael also said the victim — recently divorced — had paid for a plane ticket to meet the alleged partner. After the transfer, the scammer admitted the relationship photos were fake and had been generated with AI. The incident highlights a growing problem in crypto: pig butchering scams drained an estimated $5.5 billion from victims in 2024 across roughly 200,000 cases, according to industry tallies. Blockchain security firm Cyvers breaks down the grooming timelines: about 35% of victims are groomed for one to two weeks, while roughly 10% are groomed for up to three months. Experts warn the issue has broader implications. Andrew Fierman, head of national security intelligence at Chainalysis, told a podcast in November 2025 that victims often end up on lists that make them more likely to be targeted again, framing pig butchering as a potential national security concern. Law enforcement has also moved aggressively: in June, the U.S. Department of Justice announced the seizure of more than $225 million in crypto tied to pig butchering operations. This case underscores how social engineering — often amplified by AI-generated imagery and persuasive messaging — remains one of the most damaging threats for crypto holders. Advisors and security firms urge caution: verify counterparty identities, be skeptical of promises of guaranteed returns or quick doubling schemes, and resist pressure to move funds, especially when urged by someone you met online. Read more AI-generated news on: undefined/news

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