Alabama Crypto Fraud Recovery

Alabama securities regulators have seized over $125,000 in crypto assets linked to residents affected by elaborate “pig butchering” scams that resulted in nearly $580,000 in losses.

The Alabama Securities Commission (ASC) recovered $53,227.81 for a Baldwin County resident who lost about $185,000, and $73,927.68 for an Etowah County victim defrauded of $395,000 through distinct schemes originating from dating apps and messaging platforms earlier this year, according to a Friday statement.

The Pig Butchering Scam

Pig butchering scams are rapidly becoming the most prevalent type of crypto fraud, exploiting the anonymity of digital assets alongside victims’ emotions using well-planned romance schemes.

These scams are increasingly sophisticated, taking advantage of crypto’s irreversible transactions and global reach to siphon billions from unaware Americans.

In the Baldwin County incident, the victim connected with the suspected scammer through the Bumble dating app. Over three months, she was persuaded to invest and transfer over $185,000 in crypto to a platform that appeared legitimate but was ultimately controlled by the scammer.

Upon attempting to withdraw funds after being told her investment had grown to $443,000, she was instructed to send additional crypto to cover supposed taxes—a common warning sign that led her to notify authorities.

The victim from Etowah County met their scammer via a WhatsApp advertisement, leading them to invest $395,310 in a bogus platform falsely claiming connections to Charles Schwab and SEC registration. A financial services firm reported suspicious activities when the victim sought large withdrawals for crypto investments.

ASC’s Response

“The ASC continues to observe rising instances of cryptocurrency fraud, including ‘Pig Butchering,'” remarked ASC Director Amanda Senn. “Most cyber crimes originate from abroad, and since transactions are immediate, it becomes almost impossible to track down the criminals or recover funds.”

Federal authorities are intensifying actions against the infrastructure supporting these scams. In March, the U.S. Treasury imposed sanctions on the Philippine-based Funnull Technology Inc. and its Chinese administrator, Liu Lizhi, for enabling pig butchering and other crypto fraud schemes that have defrauded Americans of upwards of $200 million.

The ASC has stressed the importance of promptly reporting suspected fraud, warning that delays greatly diminish the likelihood of recovery.

According to Chainalysis’s February Crypto Crime Report, crypto scams exceeded $9.9 billion globally in 2024, with pig butchering representing 33.2% of all scam revenue. The revenue from pig butchering grew by nearly 40% in 2024, with deposits up by 210%, while average deposit amounts fell 55%, indicating that criminals are now executing shorter scams to broaden their victim pool instead of dedicating months to building relationships.

Edited by Stacy Elliott.