Scammers using AI deepfakes have siphoned over $86,800 in Bitcoin from a divorced father, even after repeated warnings from security experts.
In a post on X, Terence Michael of the BTC security firm Bitcoinadviser says his client is not wealthy and had only just reached the milestone of owning one full Bitcoin after years of hard work.
“He finally made it to 1 BTC. I celebrated with him over the phone.”
Michael says the client, who was recently divorced with a young daughter, set up a multi-key security and inheritance structure with Bitcoinadviser and Unchained. But within days of leaving the crypto exchange Coinbase for a more secure setup, Michael says the client was approached by someone claiming to be a trader who promised to double his money.
“On top of that, the trader was an attractive woman who fell in love with him. They were set to spend Christmas together.”
Michael says immediate red flags appeared when the client asked both security partners to sign a transaction request, something that is rare and typically signals a lost key or unusual pressure.
“My client was falling for a pig butchering scam.”
Both Bitcoinadviser and Unchained delayed signing the transaction and attempted to confirm the client’s intent. Michael and fellow adviser Peter Dunworth warned him repeatedly, spending hours on phone calls and text messages explaining how the scam worked and why the funds would be unrecoverable once sent.
“No matter how much I begged and tried to get as respectfully aggressive as I could, he was convinced this was for real. [He] said he was a big boy, and it was his Bitcoin, and he wanted to send it to this woman.”
Michael says the emotional manipulation was central to the scheme. The woman claimed to love the victim, offered to help him make fast gains, and convinced him to buy her a plane ticket so they could be together.
In a final attempt to slow the process, Michael suggested moving the funds into a single-signature wallet controlled solely by the client, hoping the delay would give him time to reconsider.
Despite the warnings, the client still fell for the scam.
“And as of last night, while out to dinner, I received a devastating text message from him saying he had lost it all.”
The victim later shared a message he received from the scammer, who admitted the relationship was fake and referenced the use of AI-generated images.
Says the scammer,
“I’m sorry to let you know this wasn’t real. I am not the person you see in pictures, it’s AI and other people’s pictures.”
In a message to Michael, the victim says he no longer knows what to do moving forward.
“My wife left me, my retirement funds for me and money for my daughter is gone… I’m beyond crushed.”
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