Austin Arrest in $1.4M Pig Butchering Scam Case

While I still believe that Southern Hospitality is alive and well in Texas, I also know there are criminals and scammers here in the Lone Star State as well. That was apparent recently as law enforcement officers in Austin arrested a man accused in a $1.4M ‘pig butchering’ scam. While there seems to be new scams almost daily, this type of scam is less widely known the ‘pig butchering’ scam.

What Is a ‘Pig Butchering’ Scam?

According to KXAN, a Taiwan-based courier is accused of helping to carry out the investment scam. Tzu-Hung Hsu is charged with engaging in organized criminal activity, which is a first-degree felony. He was arrested on April 13 after investigators set up a sting operation at a South Austin bank.

Authorities believe that Hsu was part of an international fraud network that targeted a victim through a messaging app. He created a relationship with the victim and convinced him to invest in a fake trading platform.

How the Victim Was Targeted Online

The victim, known as “Eduardo” reported the scheme to the FBI’s Internet Crime Complaint Center in March. The victim explained how he was approached in September through the LINE messaging app by individuals posing as investment advisors.

Over several months, the suspects convinced the victim to increase the amounts of money into a fraudulent platform known as “DAIQ”, and promised daily returns of 3% to 5%.

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How Much Money Was Lost

The victim handed over cash, wired funds, and purchased gold, totaling over $1,408,850. That total was collected between October 2025 and March 2026.

Investigators say that this scam known as ‘pig butchering’ is where victims are groomed over time and encouraged to invest larger sums before being unable to withdraw funds. In March, the victim attempted to withdraw money from the platform but was told he needed to pay additional fees. He then realized he had been scammed and contacted the authorities.

Police then coordinated the victim to arrange another $40,000 exchange. That took place on April 13. Officers were conducting surveillance and observed a man matching the expected courier description at a Bank of America location.

The suspect approached the vehicle to retrieve the cash and was detained. Investigators identified him as Hsu. During the investigation, Hsu admitted to working for a man named “Jerry” who was based in Taiwan.

Investigators say the scheme involved multiple co-conspirators, including people who communicated with the victim online and several couriers who collected funds in person.

Hsu’s bond was set at $200,000. The FBI has more information on ‘pig butchering’ here.