Federal prosecutors in the Eastern District of North Carolina have seized more than $61 million in Tether (USDT) connected to a large-scale cryptocurrency investment scam known as “pig butchering.”
Key Takeaways
- U.S. authorities seized over $61 million in USDT tied to a pig butchering scam.
- Homeland Security Investigations led the operation in North Carolina.
- Tether assisted by freezing and transferring the implicated funds.
- The case highlights the rapid growth of AI-driven crypto fraud schemes.
The operation was led by Homeland Security Investigations (HSI) in Raleigh alongside the U.S. Attorney’s Office for the Eastern District of North Carolina, marking one of the largest crypto seizures in the district’s history.
According to officials, the confiscated assets were held in USDT and are now subject to federal forfeiture proceedings. U.S. Attorney Ellis Boyle stated that the district’s asset forfeiture team is focused on stripping criminals of their profits and disrupting the financial infrastructure behind such schemes.
Tether, the issuer of the world’s largest stablecoin, cooperated with investigators by freezing the implicated wallet addresses and facilitating the transfer of funds to government-controlled accounts.
How the “Pig Butchering” Scam Worked
Investigators described a structured and highly manipulative fraud model designed to extract maximum funds from victims over time.
First, scammers built long-term trust by posing as romantic partners or close friends through social media and messaging apps. Once emotional credibility was established, they presented themselves as experienced traders with exclusive strategies or insider knowledge.
Victims were then directed to professional-looking websites designed to mimic legitimate crypto trading platforms. These fake dashboards displayed fabricated gains, convincing individuals to invest larger sums.
When victims attempted to withdraw funds, they were met with obstacles – often told they needed to pay additional “taxes,” “fees,” or “verification costs” before accessing their profits. In reality, no legitimate investment existed. The stolen funds were quickly moved through multiple crypto wallets to obscure their origin.
Investigation and Asset Tracing
The case began after a North Carolina resident reported suspected fraud to an HSI hotline. Agents used blockchain analysis tools to trace the movement of USDT through layered wallet networks, identifying accounts that still held significant balances.
Those funds were ultimately frozen and seized. While some of the recovered assets could potentially be used to compensate victims, authorities have not yet issued a formal recovery framework for affected individuals.
Broader Surge in Crypto Fraud
The seizure comes during a sharp rise in crypto-related crime. According to industry data from 2026, total global scam losses in 2025 reached approximately $17 billion. AI-powered impersonation tactics and advanced social engineering methods have reportedly surged by 1,400% year-over-year.
Federal officials continue to urge victims to report suspicious activity through official channels such as the U.S. Department of Justice and the Federal Trade Commission.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/u-s-authorities-seize-61m-in-tether-tied-to-crypto-scam/
