A 60-year-old woman in the United States lost approximately $7,000 to a suspected cryptocurrency trading scam known as "BG," which recruited her and her friends through a religious event late last year. Her 33-year-old child also invested $1,200 in the scheme after being encouraged by the mother. The family now faces significant financial strain, with the mother's mortgage reportedly behind as she struggles to withdraw funds.

The scam reportedly used a fabricated persona, "Stephen Beard," depicted through AI-generated deepfake technology, to build trust with investors. Victims were led to believe they were engaged in legitimate "copy and paste" trading, a common tactic where participants follow supposed expert signals to execute trades on a platform. These platforms are often entirely controlled by the scammers, with all reported trading activity and profits being fictitious.

Concerns about the legitimacy of BG emerged as the platform underwent multiple website changes and the deepfake nature of "Stephen Beard" became apparent. Despite these red flags, the older victims, including the mother and her friends, continued to believe in the scheme, reportedly influenced by the persona's encouraging messages. These individuals, all in their 60s, have struggled to accept the warnings from the younger family member.

Attempts to withdraw funds have been met with demands for a "tax" payment, a classic exit scam maneuver designed to extract additional money from victims before the platform inevitably collapses or disappears. Legitimate financial institutions and trading platforms do not require investors to pay taxes directly to them for withdrawals; taxes are typically handled by the individual with tax authorities after funds are received.

The Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC) have repeatedly warned against investment scams promoted through social circles, especially those targeting religious communities or promising high, guaranteed returns. These "affinity frauds" exploit trust within groups, making victims more susceptible to manipulation. The FBI's Internet Crime Complaint Center (IC3) reported a significant increase in crypto investment scams last year, with losses totaling billions of dollars. Many of these schemes mimic legitimate trading operations, using sophisticated websites and fake testimonials.

Victims of such scams often face an uphill battle in recovering their funds. Law enforcement agencies, including the FBI and local police departments, encourage individuals to report these crimes promptly. The FTC also maintains resources for victims of fraud, including guidance on reporting and steps to protect against further financial exploitation. The specific entity known as "BG" has not been formally charged by U.S. regulators, but its operational characteristics align with known "pig butchering" scams, which groom victims over time before draining their investments.

Individuals who suspect they are victims of a cryptocurrency scam should cease all communication with the perpetrators, gather all available evidence, and report the incident to the IC3 at ic3.gov.