A recently divorced father lost his only Bitcoin after being convinced a stranger loved him and could double his money.

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Bitcoin adviser and author Terence Michael of The Bitcoin Adviser issued a warning to the crypto community after revealing that a client lost their entire BTC holdings to a “pig butchering” scam, as social engineering fraud continues to wreak havoc.

Even a multi-signature wallet could not prevent a determined victim from sending Bitcoin to a scammer pretending to be a trader.

Romance, Riches, and Ruin

In a post on X, Michael mentioned that the client was not wealthy and had only recently saved up 1 BTC after years of effort. After shifting his funds from Coinbase into a multi-signature wallet designed with The Bitcoin Adviser and Unchained, he fell prey to a scam. It’s crucial to understand that this security measure was meant to enhance protection and inheritance.

Michael stated that the loss was attributed not to a technical flaw or a breach in security, but to psychological manipulation. The client was lured by a con artist pretending to be a trader who promised significant returns and gradually established a romantic connection with him. They convinced this father that they were in love and had plans to celebrate the holidays together.

Michael remarked that he and others quickly recognized the scenario as a classic pig-butchering scam, where scammers slowly build trust before inducing victims to send money. Despite hours of phone conversations, repeated messages, and articles cautioning against such schemes, the client persisted in believing the offer was genuine and went ahead with the transfer.

Although the multi-signature wallet setup introduced delays and demanded multiple confirmations, Michael clarified that it ultimately couldn’t block the transfer once the client authorized it. Advisers aimed to delay the process by urging the client to transfer funds to a personal wallet first, hoping the extra time would cause him to reconsider.

Michael emphasized that the situation was particularly devastating because the Bitcoin held significant value for the client as a financial asset and for securing a better future for his young daughter.

“I share this as a warning to anyone else you might know who may fall victim to this scam. Bitcoin can’t magically double, and it certainly can’t double through someone you’ve never met who is purportedly falling in love with you.”

Global Impact of Romance Scams

Last year, Nigerian authorities arrested 792 individuals in a notable crackdown on crypto-related romance scams. According to the Economic and Financial Crimes Commission (EFCC), the operation uncovered a network involving foreign nationals collaborating with Nigerian scammers to execute romance and investment scams globally.

Investigators revealed that the recruits were trained to impersonate foreign women online to attract victims into counterfeit cryptocurrency investments.

Moreover, recent investigations in Australia exposed extensive misuse of cryptocurrency ATMs, relating to over 150 scam cases that resulted in victims losing more than $3.1 million within a year. In one instance, a woman in her 70s lost $281,000 after succumbing to a romance scam and repeatedly depositing cash into crypto ATMs. Authorities stated that many victims were manipulated rather than being criminally involved. Consequently, regulators have implemented stricter guidelines, including cash limits, scam alerts, and enhanced customer checks to combat fraud.