DOJ Seizes $61 Million Tether Tied to Pig Butchering Scams

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Yash Shield
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The U.S. Department of Justice seized over $61 million in Tether (USDT) linked to pig butchering cryptocurrency scams. Homeland Security Investigations (HSI) in Raleigh traced the funds from victim reports. This marks one of the largest single USDT confiscations in U.S. history.

Pig butchering scams build fake romantic ties via dating apps or social media. Scammers pose as experts to lure victims into phony investment sites. Platforms show fake high returns to encourage bigger deposits. Withdrawals demand extra fees, trapping more money.

Once paid, funds hit scammer wallets. Criminals shuffle them across chains to hide trails. Trafficked workers in Southeast Asia often run these ops under coercion. Victims lose savings with no recovery.

HSI Acting SAC Kyle D. Burns said, “HSI special agents work diligently to trace illicit proceeds across the globe to disrupt transnational crime.”

Tether aided the seizure and announced freezing $4.2 billion in illicit funds total. They blocked $250 million from scams since June 2025. CEO Paolo Ardoino highlighted cooperation with law enforcement.

Scam Breakdown

PhaseTacticVictim Impact
Build TrustFake romance on appsEmotional hook
Lure InvestHigh-return fake sitesInitial deposits
Extract MoreWithdrawal fees/taxesTotal loss
LaunderMulti-wallet hopsFunds vanish

Key Seizure Facts

  • Date: Announced Feb 23-25, 2026.
  • Location: Eastern District of North Carolina.
  • Method: Blockchain tracing from HSI tip line.
  • Tether Role: Assisted asset transfer post-freeze.

Past wins include $225M with OKX (June 2025) and $23M via Garantex (March 2025). This disrupts scam networks relying on stablecoins.

FAQ

What is a pig butchering scam?

Romance fraud leading to fake crypto investments with no withdrawals.

How much did DOJ seize?

Over $61 million USDT from laundering wallets.

Tether’s total freezes?

$4.2 billion illicit assets; $250M scams since June 2025.

How to report scams?

Use HSI Tip Line or ic3.gov for crypto fraud.

Yash

Yash Shield

I am a Business Analytics student with a strong interest in publishing well-researched and data-driven news articles. I focus on analyzing trends in business, finance, and technology to create clear, accurate, and engaging content for readers. I enjoy transforming complex data and information into simple, meaningful stories that help audiences understand current developments. With analytical thinking and attention to detail, I aim to deliver credible and insightful news that adds real value to readers.

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