$60 Billion in Crypto Fraud: How Pig Butchering and Rug Pulls Steal Millions

Since Bitcoin launched, crypto scams have grown more
frequent and complex. They now go beyond basic phishing or giveaways, involving
even well-known companies in fraud like rug pulls.

UPay reviewed 236 major crypto scam cases, revealing losses
exceeding 60 billion dollars, though this likely underestimates the total
damage. The largest single loss was 40 billion dollars from the Luna Yield
collapse. The most common scam types identified include 112 cases of fraudulent
trading platforms, 46 romance scams, 39 pig butchering schemes, 29 rug pulls,
and 28 Ponzi schemes.

Romance and Pig Butchering Scams

The report highlights several common scam methods. Pig
butchering and romance scams involve building fake relationships to lure
victims into fake crypto platforms with inflated balances. Victims can make
small withdrawals initially but are later blocked and pressured to pay fake
fees. One victim lost over 500,000 dollars after believing her account had
grown to 1.2 million dollars.

Brand Impersonation and Fake Trading Platforms

Fake platform and brand impersonation scams use lookalike
websites and fake support to mimic trusted companies like NYMEX or Coinbase. A
California man lost 650,000 dollars after being shown a fake 10 million dollar
balance by a scammer posing as a trader.

The darkest secret of the digital age? It’s called “Pig Butchering.” This isn’t just a romance scam or a crypto investment fraud. It’s a calculated psychological long-con where tens of billions are siphoned, leaving victims too ashamed to speak. 1/3 👇 pic.twitter.com/PfDHjsDkUq

— Tom Wright (@TomWrightAsia) July 30, 2025

Fake Profits with Hidden Fees

Withdrawal traps show fake profits but require victims to
pay fees like taxes before withdrawing. One victim lost 2.9 million dollars
after being asked for a 1.5 million dollar tax fee; another lost 1.5 million
dollars in similar fake fees.

You may find it interesting at FinanceMagnates.com: SEC
Targets “Pig Butchering” and Romance Scams Leading to “Goodbye to Your Money”

Impersonated Advisors

Impersonated advisors or traders use fake trade screenshots
to gain trust and convince victims to share wallet details or open accounts.
One man lost 92,000 dollars after scammers showed a fake 200,000 dollar balance
and demanded an 87,000 dollar tax fee.

Fake DeFi Platforms

Fake DeFi platforms mimic real ones, showing fake profits to
encourage reinvestment but demand large risk deposits or penalties when
withdrawing. One victim lost 400,000 dollars after paying a 300,000 dollar risk
deposit and 100,000 dollar penalty.

Rug Pulls: Disappearing with Millions

Rug pulls involve developers promoting crypto or NFT
projects, raising funds through token sales before disappearing. The report
recorded 31 rug pulls with losses over 100 million dollars. The Bored Bunny NFT
project raised 21.1 million dollars before its team vanished.

This article was written by Tareq Sikder at www.financemagnates.com.



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