Melmac Solutions has traced cases of pig butchering and recovered stolen crypto

The Pig Butchering Scam: 10 Warning Signs & How To Avoid It

Ernie Fenwick, a 35-year-old woman, joined Tinder in search of love. And as she got to know “Marcin”, a charming young man interested in bitcoin trading, sparks started to fly. Soon after meeting each other online, Marcin persuaded Ernie to contribute some of her recent inheritance to his trading partners. She had $10,000 when she began. Then $186,000. Later several transfers totaling six figures followed, all of which went to Marcin’s “exclusive” investing platform.

Yet it was all a part of the pig butchering scam, one of the world’s fastest-growing scam kinds. By the time Ernie learned she was a victim, her inheritance had already been depleted of $8 million.

Over the past five years, the percentage of Americans who have used dating apps and undergone pig slaughtering has increased from 5% to 12%

Learn the warning signs of pig butchering scams so you may avoid falling victim before investing in any new cryptocurrency platforms or taking trading advise from a friend or online love interest.

How Does The Pig Butchering Scam Work?

In the pig butchering scam, fraudsters entice victims into online connections to gain their trust before persuading them to invest in bitcoin exchanges.The sites are controlled by the scammers, who would eventually take all the money and disappear without informing the victims.

Pig butchering scams, which get their name from the Chinese word Shāzhūpán, are long-term con jobs that incorporate elements of bitcoin fraud, investment scams, and romantic fraud.

A pig butchering scam works like this:
  •  The con artist, or “host,” contacts the target using social media, a dating app, or by texting the incorrect number.
  • Hosts maintain frequent contact to build a bond once they identify a suitable prey, the archetypal “pig.”
  •  The host tempts the victim to begin trading cryptocurrencies after gaining their trust. The host will assert to have family connections or insider knowledge of the investment world and explain that huge profits are typical.
  • The presenter then prods the victim to download an app and offers to trade with them to demonstrate how simple it is to get money. Yet it’s a bogus website run by a group of con artists.
  • After the victims sign up for the platform, the host simulates trades to make it appear as though they are making money. In order to boost the victims’ confidence, the host might even advise them to remove some of their “gains.”
  • Believing everything to be legitimate, victims invest increasing amounts of money. The host keeps tricking the victims (as well as the platform) over time to keep them investing. Prior to a metaphorical slaughter, this process is referred to as “fattening the pig.”
  • When victims attempt to withdraw their money later, the platform will either claim that there is a problem with their account or tell them that they must pay exorbitant fees and taxes in order to do so.
How To Protect Yourself From Pig Butchering Scams

The state of Delaware took action in September 2022 in response to the growing number of pig slaughtering frauds. Three organizations and people linked to these cryptocurrency frauds had their accounts frozen by the state’s Department of Justice (DOJ)

Although this is a positive development, the risk of pig butchering frauds still exists.

Here are six precautions you can take:

  • Never divulge sensitive information, such as your Social Security number (SSN) or banking information, to somebody you have only met online.
  • Never give cash or cryptocurrencies to somebody you haven’t met in person or who you don’t know well.
  • Never download an app or join any investing site at the urging of someone you have only met online. Even though it appears to be genuine, it can actually be a phony software that con artists are using to make you believe you’re making money.
  • Keep in mind that “guaranteed returns” do not exist. Never trust anyone or any investment site that makes returns or minimum investment requirements.
  • If you don’t fully comprehend how cryptocurrencies operate, refrain from investing. You should avoid using the platforms if you require continual direction from someone.
  • Before you participate in any exchange, app, or investing platform, do some research online to find out about any third-party reviews and recognized scams. Check the Better Business Bureau’s (BBB) scam tracker (or public discussion boards like Reddit) for reports of scams involving particular platforms.
Can You Get Your Money or Crypto Back After Pig Butchering Scams?

The likelihood of recovering your money from a pig butchering fraud is regrettably small to none, unless  you have kept concrete record of your transactions which includes track of dates, amounts, and addresses of all cryptocurrency transactions. This helps recover lost or stolen cryptocurrency. Fraudsters utilize cryptocurrencies because it’s so difficult to monitor or get your money back once you’ve transferred it.

Even worse, numerous individuals are repeatedly re-targeted by so called “crypto recovery firms” that declare to assist victims in recovering their losses. Nevertheless, a lot of the time these businesses are scammers that use refund scams to attack victims again when they are weak.


While there are rare instances of victims getting their money back, these are insignificant in light of the billions that have been lost. For instance, Binance recovered almost $318,000 worth of cryptocurrency earlier this year. The first time that police were able to recoup any losses from crypto-romance frauds was through this confiscation, that being said, it is crystal clear there is only little the authority and police can do to help victims of cryptocurrency fraud. In the light of events such as pig butchering, overcoming this obstacle relies on a robust blockchain analytics report clearly setting out the context of the fraud.

Victims of fraud are not always able to fund complex recovery actions, and so funding for professionals working on an ‘at risk’ basis may be required, or a combination of both.

Finally, more practical impediments can include hiring a reputable financial company with such investigative capabilities as Melmac Solutions Limited with an approach which involves using blockchain analytics in tracing the movements of the assets and using attribution technology can identify whether wallets are known to be associated with particular types of fraud or with exchanges; identifying the location of exchanges and being able to exert sufficient leverage to obtain their cooperation in freezing assets, disclosing information or satisfying third-party debt orders in this space, has required some creative thinking.


What Is Forex Trading and How Does It Work?

The forex market, short for foreign exchange market, is a market for trading foreign currencies. In other words, it’s a place to exchange one currency for another, with the goal of making a profit.

The forex market is one of the busiest trading markets in the world, but it can be hard to understand how it works, especially for relatively new traders.

The better you understand how forex trading works, the better prepared you will be to protect yourself against forex scams.

What Is Forex Trading All About?

The foreign exchange market is an extremely volatile market, meaning that trading on it is a high risk, but can also provide high rewards. The potential to make a lot of money in a short amount of time is what attracts so many traders to the market.

Every currency is traded in pairs on the forex market. For example, the pair EUR/USD is the pair for trading the Euro against the US dollar.

As values of different global currencies rise and fall throughout the day, there are opportunities to make profits by trading one currency for another.

What’s the Difference Between Day Trading and Forex Trading?

In the sense that both day traders and forex traders aim to make consistent profits by buying and selling their assets throughout the day as opposed to buying assets and holding them long term, day trading, and forex trading are similar.

The key difference between day trading and forex trading is what is being traded. Day traders can buy and sell a variety of commodities and stocks, whereas foreign exchange market traders only trade in global currencies.

What Are Forex Trading Hours?

The forex market is controlled by a global network of banks, located in major commerce hubs including London, New York, Sydney, and Tokyo. This means that, unlike specific stock markets, the foreign exchange market never closes during the week — it is accessible 24/7 from Monday to Friday.

What Is Forex Options Trading?

A forex option gives a trader the right to buy or sell a currency at a certain price on or before a certain date and time, without obligating them to do so.

Buyers must agree on the prices and the dates and times with sellers and sign an options contract.

What Is a Currency Market and How Do They Work?

Currency markets have been around for as long as humans have been using currencies to buy goods and services.

If you’ve ever traveled and exchanged your local currency for a foreign currency, you’ve participated in a simple version of the foreign exchange market, albeit for practical purposes instead of in order to make a profit.

In forex trading, there are three main markets that traders participate in to try and earn profits:

Spot Forex Market

The spot forex market gets its name from the phrase “on the spot.” When you trade on the spot forex market, you are trading one currency for another right then and there at the current values.

Forward Forex Market

In the forward forex market, parties agree to buy and sell a certain amount of currency at a specified price at some point in the future. This point may either be on a specific date or within a date range.

Future Forex Market

Future forex market trading is similar to forward forex market trading, with agreements made about buying and selling set quantities of currencies at a certain date in the future. The main difference is that the future forex market utilizes legally binding contracts.

What Is a Base and Quote Currency?

The base currency in a forex trade is the first currency listed and is the currency you are buying when you make a trade. The quote currency is the second currency listed and is the currency you are selling. Every global currency is represented by a three-letter code.

Example of Base and Quote Currency

In the example USD/CAD, USD stands for US dollar and is the base. CAD stands for the Canadian dollar and is the quote. If the base/quote pair USD/CAD is trading at $1.28, it means that buying $1 USD costs you $1.28 CAD.

What Categories Do Most Forex Trading Providers Use?

With so many countries, many of which use their own unique currencies, you can imagine how many unique base and quote currency pairs it’s possible to trade on the foreign exchange market.

That being said, there are four main currency pair categories that forex traders usually trade-in through brokers:

Major Pairs

There are seven major pairs that account for approximately 80% of forex trades made around the world. All major forex pairs include the US dollar. Examples of major pairs are EUR/USD, USD/CAD, AUD/USD, and USD/JPY.

Minor Pairs

Minor pairs are less frequently traded than major pairs and don’t necessarily include the US dollar in all pairs. Examples of minor pairs in forex trading include GBP/JPY, EUR/GBP, and EUR/JPY.


Exotics forex trading pairs up major global currencies with smaller currencies. For example, they might match USD with currency from smaller European countries that have currency other than the Euro, such as Denmark (DKK) or Norway (NOK).

Regional Pairs

Regional forex pairs are currencies paired up for two countries in the same region. For instance, Australia (AUD) and New Zealand (NZD) in Oceania or Norway (NOK) and Sweden (SEK) in Scandinavia.

What Is the Spread in Forex Trading?

The spread is the difference between the buy and sell prices for any given forex pair. The bigger the spread, the more potential you have to make money from trading a certain forex pair.

What Is a Lot in Forex?

A lot is simply a standard-sized batch of currency units. Lots can be as small as 100, but standard lot sizes are 100,000. The bigger the lot traded, the higher the profits can be.

What Is Leverage in Forex?

Leverage is when traders borrow capital to make bigger forex trades. Many forex traders don’t have the capital to buy a standard-sized lot of 100,000 currency units, so they borrow in order to make larger trades and, hopefully, greater profits.

What Is Margin in Forex?

Margin is a sum of money set aside in a forex trading account to cover financial obligations to brokers in the event that a trade doesn’t go well for you. Different brokers require you to maintain different margin balances in order to trade with them.

What Is a Pip in Forex?

A pip is a single-digit movement in the fourth digit of a currency’s price on the forex market. So, if the value of USD/CAD moved from $1.28561 to $1.28571, it went up one pip.

What Is Swap in Forex?

A swap is an agreement to exchange foreign currency between two parties, typically with the goal of securing loans at a better interest rate than if you were to borrow directly from a foreign market.

What Is Swing in Forex?

Swing trading is when you perform forex trades that last a few days or longer to profit from an anticipated price change for a given currency. Since many forex trades can last as little as a few minutes, swing forex trading is considered mid-term trading, as opposed to short-term trading.

What Is Copy in Forex?

Copy-trading in forex is when you use some type of software to replicate the trades of other traders in real time, hoping to copy their success.

What Is the Best Forex Trading Platform?

There is no single best forex trading platform for beginners since trading on the foreign exchange market is not centralized. However, there are bad forex trading brokers, which are often unregulated and operate different scams and different types of fraud.

That’s why it’s important to make sure you always trade forex through a broker platform that’s regulated in the country you’re trading in.

Every country has its own governing bodies for forex trading platforms, do your research to find out what local regulations are and choose a reputable broker accordingly to protect yourself from forex scams.

How Do I Protect Myself From Forex Trading Scams?
  • Check the licenses and regulations of any brokers you’re considering trading through
  • Watch out for pyramid schemes, which involve you paying for forex trading “advice” or “training” and emphasize you recruiting more people into the program
  • Don’t use forex trading bots or robotic software that allegedly helps you make good trades
  • Be wary of any trading advice or promise that sounds too good to be true, i.e. “get rich quick” scams
  • Avoid forex brokers that don’t have contact information or background info
  • Don’t trust unsolicited marketing related to forex trading
  • Do your research about any forex trading platform before using it to determine how trustworthy it is
If You Are Scammed By A Forex Trading Scam

Melmac Solutions are experts in getting money back from forex trading scams. Should you find you fell into a trap of and you have been completely ripped off, all is not lost.

Contact us today to learn how we can help you retrieve your money from a forex trading scam.

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What Are Binary Options Trading and How Do They Work?

When you’re looking at different investing options to choose from, you’re bound to come across something called binary options. This article will go over the basics of what binary options trading is and the risks associated with it.
What Is a Binary Option?

A binary option is a financial option that can either pay out a fixed price amount or nothing at all. When you buy binary options, you’re essentially betting that the price of the option will reach a certain point at a certain time, at which you sell it. You can either be right or wrong, which is why binary options are known as all-or-nothing options.

Difference Between Binary Options vs. Options:

One of the most significant differences between Binary Options Trading and Real Options Trading is that Binary Options Trading has extremely short expiration, sometimes as little as 60 seconds, whereas Real Options Trading has expiration as long as a week and as short as a year. This makes a huge difference since you have time to properly analyze a transaction and manage it along the way, allowing the price of the underlying asset, be it stock or other assets, to move in the projected direction.

Unlike other types of options, binary options don’t allow you to purchase or hold the underlying asset. As soon as your binary options contract expires, you receive a fixed amount or nothing. Thus, binary options are even more risky than other types of options.

What Are Binary Options Signals?

Binary options signals are notifications that you purchase from a company or an investment advisor that tell you when and what binary options to trade. These signals can even come from trading bots and algorithms, and are very risky to purchase because there are lots of scam signals out there.

What Are Binary Options on Stocks?

Some types of binary options are based on individual stocks or stock indexes, meaning that traders speculate on the underlying stocks to guide their binary options trading decisions.

How Do Binary Options Work?
1. The Underlying Market

Binary option values are based on underlying markets. In other words, as global markets fluctuate, their prices influence how much binary options are worth. When you buy a binary option and speculate on the price it will reach, you’re doing so based on how you think a certain market will affect the option’s price.

2. The Strike Price

The binary options strike price is the price which you think the options will reach, at which you will sell them to make a fixed profit. If you are wrong about the strike price and the price of the options stays below it, you don’t make anything.

3. The Expiration Date and Time

The expiration date and time is when your binary options are settled into a cash value. If they surpassed the predicted strike price, you get paid your fixed amount.

The 4 Markets You Deal With in Binary Options

Forex is short for foreign exchange market and it is the market where currencies are bought and sold.

Stock Indices

Stock market indices, or stock indexes, are subsets of the stock market that are bought and sold as a group.


Commodities are raw materials that you can invest in, such as precious metals, oil, natural gas, and agricultural goods.

Binary Events

Another type of binary options trading is binary events trading. For these types of trades, speculation is based on upcoming events, such as announcements, which can drastically affect the prices of binary options one way or another.

What Is Binary Trading?

Binary trading is the act of buying and selling binary options. You can do this via a variety of binary options trading platforms.

What’s the Minimum Deposit for a Binary Trade?

The minimum deposit for binary trades varies depending on the platform you trade on. However, it can be as low as $5 USD.

How To Trade Binary Options
  1. Study different market trends
  2. Sign up for a binary options trading platform
  3. Decide which market you want to trade binary options for
  4. Choose a strike price and expiration date/time
  5. Make the trade
  6. Wait for the binary options trade to expire and settle into cash
Binary Options Trading Example

Here’s an example of how a binary options trade might look: let’s say that a commodity, oil, is trading at $80 and you want to purchase a binary option for the market. You buy a binary option with a strike price of $85 and an expiration date and time of tomorrow at 1 p.m.

If the binary option goes above $85 by tomorrow at 1 p.m., you earn a fixed percentage or sum, depending on the terms set forth by the binary options trading platform you used to make the trade. If it stays below $85, you don’t make any money.

How Are Binary Options Regulated in the US ?

Binary options are fully legal and regulated in the US, provided that you trade them on an approved US exchange. If you trade on an unregulated exchange, you are more likely to get scammed because they are not subject to the rules of regulated exchanges.

Is This the Same Outside of the US ?

Different countries have different governing bodies that regulate binary options trading. However, the level of regulation varies greatly, and some countries do not regulate binary options trading at all.

Can You Get Scammed on a Binary Options Trade ?
Despite binary options are a legitimate trading option in and of themselves, there are a number of binary options scams out there, including fraudulent binary options brokers. As a result, you should always trade binary options through a recognized and regulated exchange in your home country.

Unregistered platforms frequently operate illegally and can defraud you in a variety of ways. For example, they may refuse to compensate you or even change data to make it appear as if you lost a trade.

Binary options scammers have also been known to steal credit card information and other financial information, as well as commit identity theft. They can then utilize your sensitive information to directly steal big sums of money from your accounts.

There are also other binary options signal scams in which scammers provide poor investing advice in exchange for a flat price. Be extremely aware of trading bots offering signals.

Please get in touch with Melmac Solutions right away if you believe you have been defrauded when trading binary options. To recover your assets, our team of fund recovery experts will do every effort.