Feds Seize $61 Million in Tether Linked to ‘Pig Butchering’ Crypto Scams

A tip to Homeland Safety unraveled a multi-wallet laundering scheme, which finally resulted in a $61 million Tether confiscation.

US federal brokers have seized greater than $61 million price of USDT. Investigators traced the seized funds to cryptocurrency addresses allegedly linked to the laundering of felony proceeds obtained via “pig butchering” schemes.

In line with the official press launch, the funds had been linked to scams during which victims had been recruited and manipulated into transferring cash below false pretenses.

Romance, Pretend Income, and $61M in USDT

Courtroom filings states that felony actors focused victims by establishing belief and infrequently posed as romantic companions. After gaining victims’ confidence, the scammers claimed to have specialised information or strategies that might generate large income via cryptocurrency buying and selling.

Victims had been directed to fraudulent cryptocurrency buying and selling platforms that carefully resembled reputable platforms in identify and look. These faux platforms displayed fabricated funding portfolios and confirmed unusually excessive returns with a purpose to encourage victims to speculate growing quantities of cash.

When victims tried to withdraw their funds, they had been unable to take action and had been often instructed they wanted to pay further “taxes” or “charges” to launch their belongings. In line with authorities, these techniques had been used to extract extra money from victims.

As soon as funds had been transferred to cryptocurrency wallets managed by the scammers, the cash was rapidly moved via a number of wallets to hide its supply, possession, and management. On this case, Homeland Safety Investigations (HSI) brokers and analysts in Raleigh obtained a grievance via the HSI Tip Line and traced the sufferer’s funds via a number of cryptocurrency wallets concerned within the alleged fraud and cash laundering scheme.

Authorities additionally revealed that a few of these wallets nonetheless held important quantities of victims’ funds, making them topic to seizure and forfeiture.

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Crackdowns

Tether has been involved in a number of monetary crime investigations in coordination with worldwide regulation enforcement companies. The stablecoin issuer has assisted efforts to trace, freeze, and assist the seizure of illicit funds. On July 22, 2025, the US Division of Justice introduced a civil forfeiture motion towards Purchase Money Cash and Cash Switch Firm that concerned freezing and reissuing $1.6 million in USDT allegedly tied to Gaza-based terror financing.

In June 2025, Brazilian authorities acknowledged Tether’s help in blocking roughly $6.2 million, linked to a cross-border money-laundering scheme carried out via Klever Pockets. Additionally in June 2025, the Division of Justice and OKX enabled a civil forfeiture grievance in search of to grab roughly $225 million in USDT allegedly linked to pig butchering funding scams. In March 2025, america Secret Service froze $23 million in funds related to transactions on the Russian-sanctioned trade Garantex.