US federal agents in North Carolina have seized more than $61 million in USDT linked to a large-scale “pig butchering” crypto investment scam that targeted victims through fake online relationships and fraudulent trading platforms.
The US Attorney’s Office for the Eastern District of North Carolina said scammers posed as romantic partners with supposed trading expertise before directing victims to sophisticated but fake crypto websites that displayed fabricated high returns and later blocked withdrawals.
“The Department of Justice and HSI acknowledges Tether for its assistance in transferring these assets,”
Prosecutors said.
Homeland Security Investigations traced victim funds across multiple wallets used to launder proceeds before identifying addresses still holding substantial balances, which were subsequently frozen and made subject to forfeiture.
The case underscores how stablecoin issuers such as Tether can cooperate with authorities to trace and immobilise dollar-pegged tokens when linked to illicit activity.
The seizure comes amid rapid growth in crypto fraud, with Chainalysis reporting that total scam losses reached $17 billion in 2025 and that AI-driven impersonation and social engineering schemes surged 1,400% year on year.
US courts have also begun handing down tougher sentences for pig butchering networks, including a recent 20-year federal prison term for a key figure in a $70 million laundering operation, reflecting intensified enforcement against crypto-enabled fraud.