MONTGOMERY, Alabama— Alabama regulators have successfully recovered more than $125,000 in cryptocurrency for two residents who were victims of so-called “pig butchering” scams, an increasingly common form of romance-based fraud that cost them a combined $580,000.
According to a statement released Friday, the Alabama Securities Commission (ASC) was able to retrieve $53,227.81 for a victim in Baldwin County and $73,927.68 for a second victim in Etowah County. Both were lured into months-long schemes involving fake romantic relationships and fraudulent investment platforms.
The scam, which derives its name from the farming practice of fattening pigs before slaughter, involves scammers building emotional trust with victims online before coaxing them into fake crypto investments. Once the victims have deposited substantial funds, the perpetrators vanish, often beyond the reach of U.S. law enforcement.
Romance and Deception on Dating Apps and Messaging Platforms
The Baldwin County case began on the dating app Bumble, where the victim developed a relationship with someone who eventually convinced her to invest more than $185,000 in what appeared to be a legitimate crypto trading platform. Over three months, she was led to believe her investment had grown to over $443,000.
But when she attempted to withdraw her funds, she was told she needed to send additional cryptocurrency to cover supposed taxes. This red flag prompted her to reach out to the ASC, leading to the partial recovery of her losses.
In Etowah County, another victim fell prey to a scam initiated through a WhatsApp advertisement. They were persuaded to invest $395,310 into a fraudulent platform claiming ties to Charles Schwab and registration with the Securities and Exchange Commission. Suspiciously large withdrawals triggered a report from Wells Fargo Advisors, which led to regulatory intervention.
Fastest-Growing Crypto Scam in the World
According to the February 2025 Crypto Crime Report by blockchain analysis firm Chainalysis, pig butchering scams were responsible for 33.2% of the $9.9 billion in global crypto fraud recorded in 2024. The method has become the most widespread form of digital asset fraud, with activity linked to romance scams growing 85 times higher than in 2020.
What sets the current wave of scams apart is how criminals have adapted. Chainalysis reports a 210% year-over-year increase in the number of scam-related deposits, while the average deposit amount has declined by 55%. This suggests fraudsters are shifting from months-long emotional cons to faster, smaller-scale attacks to ensnare a larger number of victims.
“The ASC continues to see an increase in cryptocurrency fraud, including ‘pig butchering,'” said ASC Director Amanda Senn. “Most cybercrimes originate overseas and the transactions are instant, making it nearly impossible to apprehend the criminals or recover funds.”
U.S. Authorities Target Scam Infrastructure
As regulators scramble to stem the tide of crypto-related fraud, the federal government has begun targeting the infrastructure enabling these scams. In March, the U.S. Treasury Department sanctioned Funnull Technology Inc., a Philippine-based company, and its Chinese administrator, Liu Lizhi. The pair were accused of operating pig butchering and other fraudulent schemes that bilked more than $200 million from Americans.
The rise in AI deepfake technology has also compounded the issue. A 2025 Anti-Scam Report by Bitget, co-authored with Slowmist and Elliptic, found that 40% of high-value crypto frauds last year involved deepfake impersonations of officials, celebrities, and business leaders. The report noted that scams are evolving rapidly, driven by AI, social engineering, and phoney project fronts.
Urgency in Reporting Critical to Recovery
The ASC is urging residents to report suspected crypto fraud immediately, emphasising that swift action significantly increases the chances of recovering lost funds.
“Time is of the essence,” officials said, warning that delays often allow scammers to transfer stolen assets beyond recovery.
While the recent recoveries offer hope to victims, they represent only a fraction of what was lost and an even smaller sliver of the global fraud landscape. With digital scams evolving by the day, Alabama’s efforts serve as both a cautionary tale and a call to action in the fight against crypto crime.
