2021 Bitcoin Rally Spawned a New Wave of Crypto Scams
Bitcoin's meteoric rise to $69,000 in November 2021 brought a surge in cryptocurrency-related fraud. Europol estimated that €4.1 billion was lost to crypto scams in 2021 alone.
The Rise of Pig Butchering
The most devastating new scam type of 2021 was "pig butchering" (sha zhu pan). Originating from Southeast Asia, scammers build romantic relationships with victims over weeks or months before directing them to fake crypto trading platforms.
### How It Works
1. Initial contact via dating apps or social media
2. Weeks of trust-building conversation
3. Introduction of a "trusted" crypto investment opportunity
4. Victims deposit funds and see fake profits
5. Withdrawal blocked unless more "taxes" are paid
Fake Exchanges and Clone Platforms
Over 500 fake cryptocurrency exchange websites were identified in 2021, many cloning legitimate platforms like Coinbase and Kraken.
NFT Scams
The NFT boom attracted rug pull schemes where creators abandoned projects after selling tokens, and fake marketplace listings designed to drain wallets.
Protecting Yourself
- Only use regulated exchanges registered with the FCA
- Never send crypto to someone you've only met online
- Be suspicious of guaranteed returns
- Verify all platform URLs carefully
