Navigating the Tax Implications for Crypto Scam Victims

Pig butchering scams are particularly insidious. The scammer invests significant effort to 'fatten up' the victim by engaging in prolonged interactions and creating an illusion of legitimacy. Victims are then persuaded to invest in promising crypto opportunities, which often include flashy meme coins or shitcoins. Once the investment is made, the scammer disappears with the funds, leaving the victim with nothing but losses—and a tangled tax situation.