Cryptocurrency fraud has increased dramatically worldwide and is increasingly becoming one of the most significant forms of digital economic crime. Organized groups of perpetrators deliberately exploit the trust of people who invest in cryptocurrencies or are engaging with this market for the first time. Structured investment fraud schemes, in which victims are financially exploited over an extended period, are particularly prevalent. One such method is known internationally as pig butchering.
Increasing cases of crypto fraud in Germany and worldwide
The rise in cryptocurrency fraud is not only an international phenomenon, but also clearly evident in Germany. Figures from consumer protection agencies confirm this trend. In the first half of 2025, over 250 complaints related to cryptocurrency fraud were registered nationwide. This represents roughly double the number of reported cases compared to the same period in 2024. Experts assume that the actual number of affected individuals is significantly higher, as many cases go unreported.
Cryptocurrency fraud causes billions of dollars in damage worldwide. European and international law enforcement agencies warn that online fraud could surpass other forms of organized economic crime in the future. The increasing professionalization of perpetrators is a major contributing factor to this development.
Why cryptocurrencies are particularly suitable for fraudsters
Cryptocurrencies remain difficult for many people to understand. Technical processes, trading mechanisms, and legal frameworks are complex and often incomprehensible to outsiders. Furthermore, cryptocurrencies like Bitcoin are not legal tender in most countries and do not enjoy any government protection. Their value is determined solely by supply and demand.
These characteristics make cryptocurrencies particularly attractive to fraudsters. Transactions are digital, cross-border, and sometimes anonymous. Furthermore, there are technical possibilities to obscure payment flows or route them through multiple intermediaries. This makes it difficult for victims to trace the whereabouts of their money.
Establishing contact and building trust in a targeted manner
Cryptocurrency fraud involves a variety of methods in which victims are approached. Perpetrators use social networks, messaging services, or professional platforms to make contact. Sometimes, fake advertisements or videos are used, in which supposedly successful investors or well-known personalities promote specific platforms.
Trust is usually built gradually. The perpetrators present themselves as knowledgeable, friendly, and reserved. Often, the eventual victims are going through periods of personal or financial upheaval and are therefore more susceptible to seemingly attractive investment offers. Even people with technical or economic backgrounds are affected, as the fraudulent schemes are professionally executed and convey a respectable impression.
Pig butchering as a structured form of investment fraud
A particularly systematic form of cryptocurrency fraud is known as pig butchering. This involves a multi-stage process. First, trust is built, often over extended periods. Then, the victims are persuaded to invest initial small amounts. These investments then show apparent profits on manipulated platforms.
In the next phase, larger sums are requested, often with reference to special market opportunities or limited-time offers. Once no further deposits are made or the maximum financial potential is exhausted, contact ceases. The invested funds are usually no longer available at this point.
Organization and division of labor of the perpetrators
These fraudulent schemes are rarely the work of lone perpetrators, but rather of structures organized with a division of labor. Some groups handle initial contact, others conduct the conversations, while still others are responsible for the technical operation of the platforms or for payment processing. In some cases, there are veritable supply chains for fake profiles, applications, or money laundering mechanisms. This model is also known as Crime as a Service.
Many of these structures are controlled from Southeast Asia. Law enforcement agencies report large-scale call center-like facilities where numerous individuals systematically contact new fraud victims.
Impact on those affected and high number of unreported cases
The financial consequences for those affected are often severe. In many cases, people lose a significant portion of their assets. In addition to the economic damage, considerable psychological distress is not uncommon. Shame and fear prevent many victims from contacting authorities or counseling services. Consequently, the number of unreported cases remains high.
The later a fraud case is detected, the more difficult it becomes to trace payment flows or take legal action. Early information and education therefore play a crucial role.
Legal classification and significance of the reappraisal
From a legal perspective, these situations regularly constitute investment fraud. Even if cryptocurrencies appear technically anonymous, transactions are fundamentally traceable. The legal investigation of such cases requires not only legal expertise but also an understanding of the underlying technical principles.
A thorough legal analysis of crypto fraud and structured fraud schemes such as pig butchering is part of the professional discourse on digital economic crime. RU Law provides further information and analyses in its specialist articles on the topic of crypto fraud.
