U.S. Justice Department seizes $61 million in Tether (USDT) tied to “pig butchering” crypto investment scams, disrupting laundering networks.
The U.S. Department of Justice (DoJ) has announced the seizure of $61 million worth of Tether (USDT) stablecoins that were allegedly linked to elaborate cryptocurrency investment scams known as “pig butchering,”
Authorities traced the confiscated USDT to cryptocurrency wallet addresses used to launder proceeds stolen from victims of pig butchering schemes a sophisticated type of fraud in which scammers cultivate fake romantic relationships with targets, coaxing them into making repeated investments on bogus platforms before extracting funds.
As part of the action, investigators from the U.S. Attorney’s Office for the Eastern District of North Carolina and Homeland Security Investigations (HSI) worked with Tether Limited, the issuer of USDT, to identify and freeze the wallets holding the suspect funds.
Pig butchering scams typically begin with communications on social media or dating apps, where fraudsters in some cases operating from scam compounds in Southeast Asia build trust with victims over time before directing them to invest in fake cryptocurrency trading platforms. Once victims send funds, they are often unable to withdraw assets and may be asked to pay additional fees under false pretenses.
Tether, which has the technical ability to freeze its stablecoins when directed by law enforcement, also disclosed that it has blocked more than $4.2 billion of USDT linked to illegal or illicit activity to date including several hundred million related to scam networks.
Officials say the seizure demonstrates the growing capability of federal law enforcement to trace and disrupt crypto-enabled financial crime, even when funds move through multiple intermediary wallets in attempts to obscure their origin.
Reports are sourced from official documents, law-enforcement updates, and credible investigations.
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