Federal agents in North Carolina have seized over $61 million in Tether (USDT) connected to a massive "pig butchering" cryptocurrency investment scam. These schemes prey on victims through fabricated online relationships and fraudulent trading platforms.
Scammers posed as romantic partners, claiming specialized trading expertise. They directed victims to convincing fake crypto sites that showed inflated returns, enticing further investment. When victims attempted withdrawals, scammers demanded additional fees, ultimately blocking access to funds.
Homeland Security Investigations traced illicit funds across multiple wallets used for money laundering. Investigators identified and seized addresses holding substantial amounts, now subject to forfeiture.
Authorities acknowledged Tether's cooperation in the investigation, noting the stablecoin issuer's assistance in transferring the seized assets. This marks another instance of stablecoin providers working with law enforcement to freeze and recover funds from fraudulent activities involving dollar-pegged tokens.
This seizure occurs amidst a surge in crypto fraud, particularly pig butchering schemes that combine romance scams with bogus investment opportunities. Reports indicate crypto scam losses reached $17 billion in 2025, with AI-driven impersonation and social engineering scams showing alarming growth.