Glossary
Pig Butchering
Pig butchering (from the Chinese "sha zhu pan") is a long-running investment scam. Fraudsters build trust with a victim over weeks or months, often through a friendship or romance that starts online, then persuade them to invest in a fake crypto trading platform. The platform shows growing profits to encourage larger deposits, but when the victim tries to withdraw, the funds are gone. Many of these operations are linked to organized crime groups. FinCEN issued an alert on pig butchering in 2023, and exchanges and other VASPs watch for warning signs such as customers sending large or repeated transfers to unfamiliar platforms. Verifying the counterparty behind a transfer before funds leave is one way to catch these payments early.
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