Michaela
Terence Michael, author and adviser with The Bitcoin Adviser, has revealed that a Bitcoin investor lost their retirement savings to a pig butchering scam fueled by artificial intelligence, despite repeated warnings.
Key Points
- A Bitcoin investor lost their retirement savings to a pig butchering scam fueled by AI.
- The scam involved a fake romantic relationship and false promises of doubling investments.
- Pig butchering scams exploit emotional trust and are becoming more sophisticated with AI tools.
In a detailed X post, Michael revealed that his client had lost their entire Bitcoin (BTC) holdings. After reaching 1 BTC and moving funds from Coinbase to a distributed multi-key security and inheritance setup, the Bitcoin investor was approached by someone posing as a trader, who convinced him that his investment could be doubled.
Michael explained that the individual posing as a trader also claimed to be romantically interested in his client. Despite multiple phone calls and text messages, the Bitcoin investor proceeded to send the funds to the scammer, a pattern typical of pig butchering schemes. These scams exploit emotional manipulation, often using the promise of a romantic relationship to convince victims to willingly transfer their investments.
Furthermore, Michael explained that he had recently spent hours setting up the Bitcoin investor with a multisignature wallet, distributing private keys between The Bitcoin Adviser and financial services firm Unchained Capital, ensuring added security and inheritance planning. He believed the client’s funds were safe and under full control. However, red flags emerged when the investor requested that both companies co-sign a transaction, an unusual request suggesting that the client may have lost access to one of his keys, even though only two signatures were required to move the Bitcoin.
Related: Base Co-Founder Faces Backlash Over Engagement With Soulja Boy Token
To give the Bitcoin investor time to reconsider sending funds to the scammer, Michael set up a separate single-signature wallet and advised that any transfer from the multisignature wallet should first go into his own wallet. Michael repeatedly warned the investor that the situation resembled a pig butchering scam and cautioned that proceeding could jeopardize generational wealth intended for him and his daughter.
Despite Michael’s repeated warnings, he eventually received confirmation from his client that he had fallen victim to a pig butchering scam. The scammer later admitted to the fraud, seemingly influenced by remorse over their actions. “I’m sorry to let you know this wasn’t real, try and research about pig butchering, I did get emotionally attached that’s not a lie but I am not the person you see in the pictures it’s AI and other [people’s] pictures,”
Related: 7 Reasons Gas Fees Rise and How It Affects Everyday Web3 Users
Pig butchering scams have become increasingly prevalent in the crypto space, with AI tools being used to enhance their reach and deception. A notable case involved a 53-year-old French woman who was duped by an AI-generated image of Brad Pitt and ultimately lost her life savings under the guise of funding a cancer treatment.
Frequently Asked Questions
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
