What is a pig butchering scam?
A pig butchering scam is a form of investment fraud where perpetrators deliberately build trust to trick victims into investing large sums of money. The term originates from China and describes the „fattening“ of a victim before they are „slaughtered“—meaning they lose everything. The perpetrators make contact via dating apps or social media, posing as successful investors. They fake high returns using manipulated trading apps or websites. The victim is gradually persuaded to make increasingly large deposits. Once large sums have been invested, withdrawals are blocked or prevented with fees. Communication frequently takes place via messaging apps such as WhatsApp or Telegram. From a criminal law perspective, this usually constitutes commercial fraud and money laundering. Recovering the money is sometimes possible through swift action, legal support, and international cooperation. Typical warning signs include unrealistic promises of returns, emotional attachment, and pressure to make further payments.
Cryptocurrency tracking – key to success in recovery
Following the fraudsters' instructions, our client transferred approximately EUR 350,000.00 in 2022 to various crypto exchanges (Coinbase, Bitpanda, Nexo) in order to exchange it there for Bitcoin and transfer it to a purported trading platform. After failing to receive the promised payouts despite repeated assurances and instead being asked to deposit more money, the victim turned to the law firm ATB.LAW, which specializes in cybercrime and cryptocurrency tracking, as well as to the criminal police.
Through targeted Cryptocurrency tracking On the blockchain, it was possible to reconstruct the path of the stolen assets. Using state-of-the-art forensic tools and expertise in blockchain analysis, the BTC could be tracked from the victim's wallets to an address at the cryptocurrency exchange Binance.
We track the crypto assets on the blockchain ourselves – which saves us time and costs
Seizure / Confiscation by the Public Prosecutor's Office
Based on the subsequent tracking of the BTC, the criminal police immediately sent a direct inquiry to the cryptocurrency exchange that had received the incriminated assets and had the funds located in the account provisionally frozen. The Innsbruck Public Prosecutor's Office subsequently issued a so-called confiscation order and ordered the seizure of the Bitcoin fraudulently coaxed from the victim. The victim's Bitcoin were then transferred to a wallet of the Federal Criminal Police Office – Cybercrime Competence Center (C4).
Legal Challenges – Why is it advisable to involve lawyers specializing in cybercrime?
The further legal path from the seizure to the recovery of disposal power over the bitcoins was rocky and characterized by numerous legal hurdles. Initially, the public prosecutor's office intended to convert the seized bitcoins into euros. However, this did not correspond to our client's wishes. Had the public prosecutor's office converted the bitcoins into EUR at the time of the seizure, the victim would have suffered a loss of over EUR 100,000.00. Through consistent and argumentatively sound action, we were able to prevent the conversion of the seized bitcoins into EUR through the courts.
Upon the entry into force of the Code of Criminal Procedure Amendment Act 2024 have the legal prerequisites been created to allow, already in the preliminary investigation proceedings (without a fishing expedition and conviction of the perpetrator), a early release of confiscated cryptocurrencies to enable. As a result, we submitted a corresponding application in accordance with the new legal situation. An additional challenge was the question of commingling of assets because the wallet partially contained cryptocurrencies belonging to other individuals as well. This issue was also successfully resolved through precise legal argumentation and technical analysis.
Cooperation with authorities: A success story
Particularly noteworthy is the constructive cooperation with the State Office of Criminal Investigation Tyrol, the Federal Criminal Police Office Cybercrime Competence Center (C4) as well as the Innsbruck Public Prosecutor's Office. Through clear communication, well-documented chains of evidence, and precise legal argumentation, a result was achieved that in this form is by no means a given. As efficient an exchange as possible between the victim, legal counsel, police, and the public prosecutor's office is necessary to be successful in the fight against cybercrime.
FAQ – Recovery of Cryptocurrencies after Fraud
Can you recover stolen cryptocurrencies?
Yes. With a rapid response, technical blockchain forensics, and legal support, stolen cryptocurrencies can in certain cases be recovered and returned to the victims.
How long does the cryptocurrency recovery process take?
The duration depends on the complexity of the case, the number of countries involved, and the cooperation of the platforms. In simple cases, recovery is possible within a few months, but complex international procedures can take significantly longer.
What is a pig butchering scam?
Pig butchering is a scam in which perpetrators build trust over a long period of time to trick victims into making large investments – often in cryptocurrencies. In the end, the funds disappear into the perpetrators' accounts.
Why is it important to act quickly?
Cryptocurrencies can be transferred and obscured very quickly. The faster victims involve specialized lawyers and authorities, the greater the chance of recovery.
What to do if my cryptocurrencies have been stolen?
Document all transactions, secure evidence, and immediately contact a law firm specializing in cybercrime and crypto forensics.
Conclusion – What to do in case of crypto fraud?
Many victims of crypto fraud give up hope too early. Our case shows: those who act quickly, a specialized cybercrime lawyer contacts and relies on well-founded follow-up has a chance of recovery.
If you have been the victim of a similar scam:
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Document all transactions and communication histories.
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Contact an experienced lawyer for cybercrime / online fraud immediately.
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Let the tracking of the cryptocurrency be carried out by experts.
As Cybercrime Lawyers specialized in Cryptocurrency tracking we support you comprehensively – legally sound, fast, and efficiently. For further information and individual consultation, you can contact Lukas Riedler and Roman Taudesand available at any time. Contact us at office@atb.law or by phone at +43 1 39 123 45.
