A father of three has revealed how he lost his life savings, home and wife after being tricked into investing in bogus cryptocurrency schemes by two women he met on social media.
Michael Holloway, a 62-year-old real estate agent from New Jersey, was conned out of $500,000 by online fraudsters, who lured him in with fake relationships before convincing him to empty his entire retirement pot.
Michael was so upset by falling victim to the vicious scam that he “hit rock bottom,” was “ready to end his life” — and was finally rushed to hospital by his concerned daughter.
He fell for a callous scam known as “pig butchering” – where victims are effectively “fattened up” with a fake relationship – be it romantic or amicable – before being “butchered” by fraudulent investment advice.
And Michael is certainly not alone. Experts warn that crime is exploding across the country and investment fraud is now the fastest growing scam in the US.
Michael Holloway, a 62-year-old real estate agent from New Jersey, was scammed for $500,000 by fraudsters
Americans lost a record $2.57 billion to cryptocurrency investment fraud last year alone, which is nearly triple the amount stolen in 2021, according to the FBI.
Earlier this year, recently divorced mother-of-three Rebecca Holloway revealed how she lost her more than $100,000 to a scammer she met on dating app Tinder who tricked her into making fake cryptocurrency investments.
In an exclusive conversation with DailyMail.com, Michael explained how he was targeted on social media – and was initially wary of would-be scammers contacting him.
“If I made a successful deal, I would post it on social media, and random people would make fun of me – and they would always mention cryptocurrency investments. I told them to forget it – I knew what they wanted and I understood it,” he said.
But in early December 2022, a woman named ‘Hui Hui’, who said she was from China, contacted him.
“I complained to her that so many people were trying to get me to invest. It stayed like a friendly conversation at first,” he said.
Michael admitted that he was having some issues with his marriage at the time and that he was vulnerable. The online conversation turned romantic – with plans for the couple to possibly meet.
This is when ‘Hui Hui’ started investing in a cryptocurrency platform and persuaded Michael to invest $18,000.
On December 21, another woman named ‘Lydia’ contacted Michael on social media.
Rebecca Holloway, pictured, revealed how she lost her entire 401(K) to a scammer she met on Tinder after he convinced her to invest in fake cryptocurrency programs
She, too, said she was Chinese and claimed to be a successful businesswoman – she even sent Michael pictures of a Bentley she claimed to own.
“Again, she was very casual in her approach,” he said. “I felt comfortable talking to her and we switched to WhatsApp. It wasn’t a romantic relationship, but she portrayed being my friend and gaining my trust.’
Michael started to get suspicious about the money he had invested with ‘Hui Hui’, even complaining to ‘Lydia’ about the situation and explaining that he would like to get the money back.
Only after three months did ‘Lydia’ come up with an investment opportunity.
“She said, ‘By the way, I can get you a lot more money. My aunt is a Wall Street trader and we’re doing a special project and you’re invited,'” Michael said.
He read the white papers and ran a stress test with the first $20,000 he invested, which he was able to take off the platform.
“I’ve been brainwashed,” he continued. “She didn’t just let me think or let me go for a second. Without hesitation those texts came in and I believed it.
“She promised me a rich life and I was attracted to the idea of making a quick profit. I should have known better.’
Michael started investing in the platform, even taking money from his 401(K) plan and forfeiting the 20 percent penalty each time.
Michael explained how he was targeted on social media – and initially wary of would-be scammers contacting him
When Michael tried to withdraw his money from the first platform he invested in in April this year, he was fined $132,000.
In a panic, he tried to cash out of the scheme he had invested in with “Lydia” – and was fined $50,000.
This, he said, was when it dawned on him that he had fallen victim to sophisticated scammers.
“My face turned bright red – I remembered the moment it happened,” he said.
“Between the two bills I lost $500,000. I lost my house, I lost my wife when she found out what I was doing, I lost my money. I was ready to end my life. I was really at a low point.
“Eventually I had a nervous breakdown and my daughter rushed me to the hospital and I was placed in a mental health unit.”
While Michael is now rebuilding his life, living in an apartment and on good terms with his ex-wife and children, he said, he is keen to warn others about the life-changing consequences of such scams.
Looking back, he recognizes the red flags typical of “pig slaughter” cases.
The scammers tend to be long winded and see the scammer enter into a months-long courtship to build trust. Scammers will often allow victims to easily withdraw money from the investment app at first – but once they invest heavily, they lose this option.
Ironically, I knew about this type of scam and even mentioned the term to both women. They apparently brainwashed me or somehow managed to convince me otherwise,” Michael added.
Rebecca Holloway, 42, also missed similar warning signs when she was conned out of more than $100,000 by fraudsters posing as a French entrepreneur named “Fred.”
Rebecca told DailyMail.com, “Single women approaching middle age are so vulnerable.
“We have money, but maybe we haven’t met the right man yet. And suddenly this handsome man starts talking to you and you are excited.
“In hindsight, the signs are so clear. But at that moment you want to believe it’s real.’
According to the Federal Trade Commission (FTC), a record $3.82 billion was stolen from Americans through investment fraud in 2022 — more than any other scam. This was a 128 percent increase from the $1.67 billion lost last year.
Investment scams are widespread and can take on any form of deceit that lures victims into putting money into a fake scheme with the promise of lucrative returns. This can include Ponzi schemes and even people being persuaded to invest in “phantom properties” that don’t exist.
A recent investigation by attorneys for investment fraud Carlson law found that most of the losses were in California – followed by Florida, Texas, New York and New Jersey, respectively.
Tech executive Shreya Datta, 37, and single mom Kate, 41 both revealed they lost $450,000 and $80,000, respectively, in a eerily similar situation to what happened to Rebecca.
Kate, from Vancouver, Washington, also thought she had met a French entrepreneur online, although he said he lived in Seattle.
California residents lost the most money to investment fraud last year, defrauding 4,982 victims out of a massive $870 million
Kate, 41, who used a pseudonym for the part, lost $80,000 to a ‘pig slaughter’ scam
Tech executive Shreya Datta, 37, lost $450,000 to heartless ‘pig slaughter’ scam
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He claimed to be called “Andy” and to work as a wine merchant. Over time, the duo got into a relationship when he convinced her to invest $80,000.
“I was the perfect dork in a way because I knew nothing about cryptocurrencies,” said Kate, who used a pseudonym for the piece.
Tech manager Shreya Datta also thought she was talking to a French wine merchant – who ended up scamming her out of $450,000.
Shreya – who earns a six-figure salary at a global technology company – told the Philadelphia investigator she had felt that she had “a hole in my soul because she didn’t have a man in my life” – which is why she was made fun of.
“I was in a trance,” she said, adding “it’s like my psychology has been hacked.”
Many pig slaughterhouses are reportedly run by criminal syndicates in Cambodia, which employ thousands of people.
A report by Vice News and the South China Morning Post last year found that workers are themselves enslaved and mistreated, lured there with the promise of legitimate employment, and given scripts tailored to individual victims.