Pig Butchering Explained: The Industrialisation of Fraud

Pig butchering, from the Chinese Sha Zhu Pan, describes a long-form fraud in which perpetrators build a personal relationship with the victim over weeks before steering them onto fake investment platforms. The pig is fattened before it is slaughtered: first trust, then deposits, finally the refused withdrawal.

The analysis traces the industrial structure behind the scheme. Execution runs through fortified scam compounds in Southeast Asia, staffed in significant part by people who were themselves recruited with false job offers and are held under coercion. Laundering is handled by specialised service providers, among them Chinese Money Laundering Networks that connect cash, banking and crypto circuits across borders. Artificial intelligence accelerates every stage, from deepfakes and voice cloning to mass-generated personas.

Drawing on the FBI Internet Crime Report, the German BKA and industry reports, the article cites one blockchain analytics firm's estimate of roughly 35 billion US dollars in inflows to criminal scam networks in 2025; the dark figure is higher still, because many victims never file a report. The piece argues that the phenomenon can only be understood as a business model whose operators act like multinational corporations, buying infrastructure on crime-as-a-service platforms.