Feds Seize $61 Million Linked to ‘Pig Butchering’ Crypto Scam

A tip to Homeland Security uncovered a multi-wallet money laundering scheme, which ultimately resulted in a $61 million seizure of Tether.

US federal agents have seized more than $61 million worth of USDT. Investigators have traced the seized funds to cryptocurrency addresses allegedly linked to the laundering of criminal proceeds obtained through ‘pig slaughter’.

According to the official press release, the funds were related to a scam in which victims were recruited and manipulated into transferring money under false pretenses.

Romance, false profits and $61 million in USDT

Court records stands that criminal actors targeted victims by instilling trust and often posing as romantic partners. After gaining the victims’ trust, the scammers claimed to have specialized knowledge or techniques that could generate huge profits through cryptocurrency trading.

Victims were redirected to fraudulent cryptocurrency trading platforms that were very similar in name and appearance to legitimate platforms. These fake platforms showcased fabricated investment portfolios and showed unusually high returns to encourage victims to invest increasing amounts of money.

When victims tried to withdraw their money, they were unable to do so and were often told they would have to pay additional “taxes” or “fees” to release their assets. According to authorities, these tactics were used to extract more money from the victims.

Once the funds were transferred to cryptocurrency wallets controlled by the scammers, the money was quickly moved through multiple wallets to conceal its source, ownership and control. In this case, agents and analysts from Homeland Security Investigations (HSI) in Raleigh received a complaint through the HSI Tip Line and traced the victim’s funds through several cryptocurrency wallets involved in the alleged fraud and money laundering scheme.

Authorities also revealed that some of these wallets still contain significant amounts of victims’ money, making them subject to seizure and forfeiture.

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Crackdown

Tether has been involved in various financial crime investigations, in coordination with international law enforcement agencies. The stablecoin issuer has contributed to efforts to detect, freeze and support the seizure of illicit funds. On July 22, 2025, the United States Department of Justice announced a civil forfeiture against Buy Cash Money and Money Transfer Company, freezing and reissuing $1.6 million in USDT allegedly linked to Gaza-based terror financing.

In June 2025, Brazilian authorities acknowledged Tether’s assistance in blocking approximately $6.2 million related to a cross-border money laundering scheme conducted through Klever Wallet. Also in June 2025, the Department of Justice and OKX facilitated a civil forfeiture complaint seeking the seizure of approximately $225 million in USDT, allegedly related to investment fraud in pig slaughter. In March 2025, the US Secret Service froze $23 million in funds linked to trades on the Russian-sanctioned stock exchange Garantex.