One thing that you're missing is a law degree. The situation might not be a simple as you think. I don't know what else you might be missing because (a) I am not a lawyer, and (b) I don't know any of the details of the scheme you lost money on. Just saying that it was "pig butchering" is not nearly enough detail. And don't bother posting more details, because no one here is going to give you legal advice. Talk to a tax lawyer.
