The U.S. Attorney’s Office for the Eastern District of North Carolina has seized more than $61 million in Tether (USDT) connected to a large crypto investment fraud scheme known as “pig butchering.”
The enforcement action was conducted in coordination with the U.S. Department of Justice and Homeland Security Investigations. Authorities traced digital wallet addresses tied to money laundering activities that were linked to fraudulent cryptocurrency investment operations.
Investigators were able to identify the wallets holding the illicit funds. After tracing the transactions on the blockchain, officials moved to freeze and seize the assets. The seized funds were held in USDT, a widely used stablecoin in the global crypto market.
The stablecoin issuer Tether assisted authorities in facilitating the transfer of the seized assets. This cooperation allowed law enforcement to secure the digital holdings as part of the operation.
The $61 million seizure is considered one of the largest single confiscations of USDT tied to romance-based crypto fraud in the United States. It highlights the increasing focus of federal authorities on tracking digital asset movements connected to financial crime.
How Pig Butchering Scams Operate
Pig butchering scams are a type of online investment fraud that has grown rapidly in recent years. The scheme typically starts with scammers contacting victims through social media platforms, messaging apps, dating apps, or other online communication tools.
Scammers often pretend to build friendly or romantic relationships with victims. Over time, they gain trust by engaging in long conversations and acting supportive or caring. This trust-building phase can last for weeks or even months.
After trust is established, scammers introduce what appears to be a profitable cryptocurrency investment opportunity. Victims are guided to deposit money into professional-looking trading platforms that show fake profit growth and rising account balances.
The platforms are designed to look real. Victims see numbers increasing, which creates the illusion that their investments are successful. Encouraged by these fake gains, many victims decide to invest more money.
When victims attempt to withdraw their funds, they are told that additional payments are required. These payments are often described as taxes, processing fees, account verification charges, or security deposits.
Even after paying these extra fees, victims are unable to access their money. In many cases, the scammers demand further payments or suddenly disappear. This method allows fraudsters to repeatedly extract money before shutting down the fake platform.
Pig butchering scams have caused billions of dollars in global losses. They often involve organized criminal networks operating across borders and using cryptocurrency to move funds quickly.
Law Enforcement Action and Asset Recovery Efforts
The seizure reflects growing efforts by U.S. authorities to track and recover cryptocurrency linked to fraud and money laundering.
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Stablecoins like USDT are popular in crypto transactions because they maintain a value tied to the U.S. dollar and allow fast transfers across borders. However, criminal networks have also used them to move illicit proceeds.
In this case, investigators traced blockchain transactions to wallet addresses associated with fraud-related money laundering. After identifying the digital assets, law enforcement agencies acted to freeze and seize the funds.
The operation involved cooperation between the U.S. Department of Justice, Homeland Security Investigations, and Tether.
Authorities stated that Tether helped in facilitating the transfer of the seized USDT. This step ensured that the funds were secured and removed from wallets linked to illegal activity.
The $61 million confiscation adds to the record of major crypto asset recoveries tied to transnational fraud schemes. It also shows how digital investigations and blockchain tracing are being used to identify and seize assets connected to organized scams.
The case underscores the scale and impact of pig butchering fraud, which continues to affect victims globally through deceptive online investment tactics and cryptocurrency-based laundering methods.