Cryptocurrency investment scams — including the notorious "pig butchering" variant — follow a predictable playbook. Understanding each stage makes them easier to recognize before you lose money.
Stage 1: The Setup (Days 1–14)
Initial contact appears accidental — a wrong number text, a random social media connection request, or a dating app match. The "person" is friendly, attractive (from stolen photos), and immediately relatable. They may live in your city or have similar interests to yours.
Stage 2: Trust Building (Weeks 2–8)
Daily contact builds genuine emotional connection. They share personal stories (often tragic ones that explain their wealth — a deceased wealthy parent, a successful tech background). They listen attentively and remember details. There's no immediate ask for money.
Stage 3: The Investment Introduction (Week 6–10)
Almost casually, they mention making money through cryptocurrency. They're reluctant to share their "method" at first. Eventually they agree to show you. They direct you to a platform they control or one that looks legitimate.
Stage 4: Small Wins (Weeks 8–12)
Your initial small investment shows impressive returns. You can withdraw small amounts to "prove" it's real. You invest more. The platform's fake dashboard shows growing profits.
Stage 5: The Big Ask
A "limited opportunity" or manufactured crisis requires a large additional investment. Your contact may encourage taking out loans or tapping retirement accounts.
Stage 6: The Exit Scam
When you try to withdraw your larger investment, you're told you must pay "taxes," "fees," or "insurance." No matter what you pay, more fees appear. Eventually, contact disappears.
If You Suspect This Is Happening
Stop sending money immediately. Don't let embarrassment delay action. Report to the FBI at ic3.gov and the FTC. Consult a licensed attorney before engaging any "recovery" company.
Sources: FBI IC3; FTC; Chainalysis Crypto Crime Report 2025.