The U.S. Department of Justice (DoJ) has revealed that it seized approximately $61 million in Tether connected to fraudulent cryptocurrency operations commonly referred to as “pig butchering” scams.
According to the department, investigators traced the confiscated digital assets to wallet addresses allegedly used to launder funds obtained through cryptocurrency investment fraud schemes. The stolen proceeds were reportedly siphoned from victims who were manipulated into investing in fake platforms promising lucrative returns.
"Criminal actors and professional money launderers use cyber-enabled fraud schemes to swindle their victims and conceal their ill-gotten gains," said HSI Charlotte Acting Special Agent in Charge Kyle D. Burns.
"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."
Authorities explained that these schemes typically begin with scammers initiating contact through dating platforms or social media messaging applications. The perpetrators build trust by posing as romantic interests or financial advisors before persuading victims to invest in fabricated cryptocurrency opportunities.
Officials further noted that many of these operations are allegedly run from scam compounds based primarily in Southeast Asia. Individuals trafficked under false promises of well-paying jobs are reportedly forced to participate in the schemes. Their passports are confiscated, and they are coerced into deceiving targets online under threats of severe punishment.
Victims are directed to professional-looking but fraudulent investment websites that display falsified portfolios and exaggerated profits. These manipulated dashboards are designed to encourage larger investments. When victims attempt to withdraw their funds, they are often told to pay additional “fees,” resulting in further financial losses.
"Once the victims' money transferred to a cryptocurrency wallet under the scammers’ control, the crooks quickly routed that money through many other wallets to hide the nature, source, control, and ownership of that stolen money," the department added.
In a related statement, Tether disclosed that it has frozen roughly $4.2 billion in assets tied to unlawful activities so far. The company said that nearly $250 million of that amount has been linked to scam networks since June 2025.
The seizure marks one of the larger enforcement actions targeting cryptocurrency-enabled fraud and reflects ongoing efforts by U.S. authorities to disrupt global cybercrime syndicates exploiting digital assets.
