Feds seize $15B in bitcoin linked to alleged 'pig butchering' scam that involved trafficked workers. Here's how to protect yourself from crypto fraud

Meanwhile, Chen and his associates lived lavishly, buying private jets, vacation homes and rare artwork, prosecutors say. The 37-year-old has been charged with wire fraud conspiracy and money laundering conspiracy, and remains at large.

“As alleged, the defendant directed one of the largest investment fraud operations in history, fueling an illicit industry that is reaching epidemic proportions,” U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York said. (1)

The Associated Press reports Prince Holding Group has previously denied involvement in scam operations and did not immediately respond to the latest allegations. (2) If convicted, Chen faces up to 40 years in prison.

What makes this case so shocking isn’t just the scale of the money involved or alleged use of trafficked workers, but how convincingly these scams are built to look real. Here’s how they work, and what you can do to protect yourself.

What is 'pig butchering'?

“Pig butchering” scams take their name from the way scammers “fatten up” victims before bleeding them dry, building emotional or financial trust before wiping out their savings.

Scammers pose as friendly acquaintances or love interests, often using fake identities, and slowly coax victims into investing in what appear to be legitimate, supposedly high-return opportunities, commonly with the use of crypto.

Victims are encouraged to keep depositing money into a fake trading platform until the scammers strike. Accounts are suddenly locked, funds disappear and the perpetrators move on to their next target.

The FBI’s Internet Crime Complaint Center says Americans reported $9.3 billion in losses to digital crimes and fraud related to cryptocurrency in 2024.

How to protect yourself

Crypto scams come in many flavors, from romance-investment hybrids to blackmail and impersonation schemes. But they share common DNA: secrecy, urgency and the promise of easy money.