CFTC Teams Up to Fight Crypto ‘Pig Butchering’ Scams

The Commodity Futures Trading Commission (CFTC) has joined forces with various organizations, including the Securities and Exchange Commission (SEC), to raise awareness about cryptocurrency scams, particularly those tied to fraudulent romantic relationships called pig butchering.

Through these partnerships, the goal is to equip the public with the knowledge to identify and steer clear of pig butchering schemes, where scammers build deceptive trust and lure victims into bogus crypto investments.

CFTC Joins Forces to Combat Crypto ‘Pig Butchering’ Scams

The Commodity Futures Trading Commission (CFTC) announced that its Office of Customer Education and Outreach (OCEO) has established two significant partnerships aimed at educating the public on cryptocurrency investment scams. These efforts focus on raising awareness about romance scams, where fraudsters exploit emotional connections to deceive victims and steal their money.

One of the CFTC key partnerships is with the American Bankers Association Foundation, alongside federal agencies such as the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS). Together, they have developed an infographic to help consumers identify and avoid pig butchering scams. In these schemes, scammers gain victims’ trust through fake romantic relationships and then persuade them to invest in fraudulent cryptocurrency ventures.

According to Melanie Devoe, Director of OCEO:

“These partnerships focus on a relationship confidence fraud the perpetrators commonly refer to as ‘pig butchering,’ that is estimated to cost Americans billions each year.”