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Its a corruption of OT sin offerings, as users commenting below you have pointed out. In the OT, the Israelites were commanded to use animal sacrifice to pre-figure Christ's sacrifice on the cross. However, they were never commanded to use the excessive cruelty seen in Kapparot, OT sin offerings were humane executions where the animal had its neck snapped first, and the parts of the animal that werent offered to God via fire were eaten by the priests. And sometimes the animal wasnt even killed, there was a rite where the priest placed the sins of the people on a goat and released it into the wilderness. Not to mention that OT sin offerings are no longer valid due to Christ's sacrifice and the destruction of the Temple, so its just killing animals for the sake of killing animals.