The U.S. Department of Justice has announced the seizure of $61 million worth of Tether (USDT) connected to large-scale cryptocurrency fraud schemes commonly referred to as “pig butchering” scams.
According to the Department, the confiscated funds were traced to cryptocurrency wallets used to launder proceeds stolen from victims through fraudulent crypto investment operations. These scams typically promise high returns and exploit victims over extended periods before draining their assets.
How the Scam Operated
Investigators revealed that criminal actors used cyber-enabled fraud techniques combined with professional money laundering operations to conceal illicit gains. The stolen funds were moved across multiple crypto addresses in an attempt to evade detection.
“Criminal actors and professional money launderers use cyber-enabled fraud schemes to swindle their victims and conceal their ill-gotten gains. HSI special agents work diligently to trace the illicit proceeds of crime across the globe to disrupt and dismantle the transnational criminal organizations that seek to defraud hardworking Americans.”
— Kyle D. Burns, Acting Special Agent in Charge, HSI Charlotte
Romance Scams and Social Engineering
As seen in many pig butchering operations, threat actors initially approach victims through dating apps and social media platforms, slowly building trust by posing as romantic partners or close friends.
Once trust is established, victims are encouraged to invest in fake cryptocurrency trading platforms, often showing fabricated profits to lure additional investments.
Over time, victims are persuaded to deposit increasingly large sums—until the scammers disappear with the funds.
Human Trafficking Behind the Scams
Authorities also highlighted a disturbing aspect of these operations: many scams are run from fraud compounds in Southeast Asia, where individuals are reportedly trafficked and forced to participate in scam activities after being promised legitimate, high-paying jobs.
These transnational criminal networks combine financial fraud, cybercrime, and human exploitation, making them particularly complex and difficult to dismantle.
Conclusion
The $61 million Tether seizure underscores the growing scale of cryptocurrency-enabled fraud and the increasing efforts by U.S. authorities to trace and confiscate illicit digital assets.
As crypto adoption continues to rise globally, coordinated law enforcement actions and enhanced blockchain tracing capabilities will play a crucial role in protecting investors and dismantling transnational scam networks.