Bay Area Widow Loses Nearly $1M in Pig-Butchering Crypto Scam, ChatGPT Warns Her

SAN JOSE, Calif. – December 2025

Another painful case of a rising “pig-butchering” scam has emerged in the Bay Area. This time, a San Jose widow lost nearly $1 million after being manipulated through an online romance that turned into an elaborate crypto-investment fraud. The scheme wiped out her retirement savings and has left her fearing she may lose her home.

71-year-old Margaret Loke thought she had found companionship when a friend introduced her to a man named “Ed” on Facebook. Their conversations quickly grew warm and affectionate, classic grooming behavior often seen in long-term romance scams.

“He was really nice to me, greeting me every morning,” Loke recalled. “He sent me a ‘good morning’ message every day. He said he liked me and mentioned we shared the same Chinese heritage.”

Within months, he was calling her “honey.” She replied with “love.” But behind the kindness was an organized criminal network overseas.

After gaining her trust, Ed guided Loke to a crypto-investment platform he claimed he managed. To show it was safe, he walked her through a small trade.

“I went into the platform to trade $15,000. I made about $24,000,” she said.

Seeing quick profits, Loke believed the system was real. What followed was intense emotional and financial manipulation. She wired $120,000, then $490,000, then another $62,000 from her IRA, each time watching the fake platform display growing account balances. Ed pressured her to keep investing so they could reach a supposed $5 million goal together.

When her savings were gone, she took out a $300,000 second mortgage and wired that money too.

Everything unraveled when she tried to withdraw her funds.

“He froze it. The funds were locked,” she said. Ed insisted she needed to send another $1 million to unfreeze the account. When she refused, his tone changed. He became threatening and warned her that she could face legal consequences.

“I don’t want us to be enemies… My lawyers will contact you,” he said in a voice message.

Overwhelmed, Loke turned to ChatGPT for help.

“ChatGPT told me, ‘No, this is a scam. You'd better go to the police station.’ I panicked and called him. I said, ‘You are scamming me!’” she said.

By then, the money was gone. Investigators later confirmed that Loke’s transfers went directly to a bank in Malaysia, where members of an international crime ring collected her funds.

The loss has devastated her life.

“I’m trying to save the house. That’s the only thing I have,” she said tearfully. “All my money is gone to the scam.”

Loke also faces a significant tax penalty for withdrawing her IRA funds all at once.

Authorities say these romance-based crypto schemes, known as pig-butchering, are spreading rapidly across the U.S. They often target senior citizens, widowed individuals, and anyone experiencing loneliness. Multiple Bay Area victims have reported similar losses, many reaching six or seven figures.

Officials urge the public to be extremely cautious and to report suspicious online relationships or investment offers immediately.

Cases like Loke’s often involve fake platforms that lock victims’ accounts once large deposits are made. Experts say wallet freezes are a common tactic in pig-butchering schemes, leaving victims unsure of their next steps. Resources such as this frozen crypto wallet recovery guide can help individuals understand how to respond when their digital assets suddenly become locked.