‘Bitcoin Can’t Magically Double:’ Advisor Sounds Alarm After Client Loses 1 BTC

A recently divorced father lost his only Bitcoin after being convinced a stranger loved him and could double his money.

Bitcoin adviser and author Terence Michael of The Bitcoin Adviser has issued a stark warning to the crypto community after revealing that one of his clients lost his entire BTC holdings to a “pig butchering” scam, as social engineering frauds continue to cause rampant damage.

Even a multi-signature wallet could not stop a determined victim from sending Bitcoin to a scammer posing as a trader.

Bitcoins Romance, Riches, and Ruin

In a post on X, Michael said that the client in question was not wealthy and had recently accumulated 1 BTC after years of saving. He had moved his funds off Coinbase into a multi-signature wallet structure set up with The Bitcoin Adviser and Unchained. It is important to note that this configuration was intended to improve security and inheritance.

According to Michael, the loss was not caused by a technical failure, compromised private keys, or a breach of the custody setup, but by psychological manipulation. The client was contacted by a person posing as a trader who promised high returns and gradually developed a romantic relationship with him. They even convinced the recently divorced father that they were in love and planning to spend the holidays together.

Michael said he and others quickly recognized the situation as a classic pig-butchering scam, where fraudsters slowly gain trust before convincing victims to send money. Despite hours of phone calls, repeated messages, and articles warning about such schemes, the client remained convinced the offer was real and chose to move forward.

While the multi-signature arrangement introduced delays and required additional confirmations, Michael said it could not ultimately prevent the transfer once the client chose to authorize it. Advisers attempted to slow the process by encouraging the client to move funds to a personal wallet first, hoping the extra time would allow him to reconsider.

Michael said the episode was particularly devastating because the Bitcoin represented the client’s primary financial asset and a potential source of long-term security for his young daughter. The adviser added that the case highlighted a broader reality in the crypto ecosystem that while robust custody tools can protect against hacks and technical mistakes, they offer limited defense against scams driven by emotional manipulation.

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“I post this as a warning to anyone else you might know who falls victim to this scam. Bitcoin can’t magically double, and it certainly can’t double by someone you haven’t met who is also falling in love with you.”

Bitcoins Romance Scams Go Global

Last year, Nigerian authorities arrested 792 people in one of the country’s largest crackdowns on crypto-related romance scams. According to the Economic and Financial Crimes Commission (EFCC), the operation found an organized network where foreign nationals worked with Nigerian recruits to carry out romance and investment scams targeting victims across the world.

Investigators said recruits were trained to impersonate foreign women online and lure victims into fake crypto investments. Authorities seized hundreds of SIM cards and computers and are continuing investigations with international partners.

More recently, Australian authorities uncovered massive misuse of cryptocurrency ATMs after a months-long investigation found more than 150 scam cases, as victims lost over $3.1 million in a year. In one case, a woman in her 70s lost $281,000 after falling for a romance and investment scam and repeatedly depositing cash into crypto ATMs. AUSTRAC said many victims were manipulated rather than criminally involved. In response, regulators introduced stricter rules, including cash limits, scam warnings, and stronger customer checks to curb fraud.