U.S. Authorities Seize $61M in Crypto Linked to Pig-Butchering Scam

U.S. authorities have seized more than $61 million worth of cryptocurrency tied to an investment fraud scheme known as the pig-butchering scam. Federal agents worked with the U.S. Attorney’s Office to trace large amounts of Tether (USDT) to wallets linked to the scam.

“Pig-Butchering” Scams Trap Victims

At its core, a pig-butchering scam combines emotional manipulation with financial deception. Scammers initially establish trust by posing as romantic partners or experienced cryptocurrency investors. They then slowly convince victims to invest in fraudulent cryptocurrency platforms.

The investigation began when Homeland Security Investigations (HSI) received a tip from a victim. Agents launched a detailed investigation and uncovered a coordinated fraud and money laundering network. Notably, Tether assisted authorities during the investigation.

According to court filings, the criminals claimed they used specialized crypto trading strategies to generate large profits. In reality, they directed victims to fake trading platforms and displayed fabricated investment portfolios. These false dashboards showed impressive gains and encouraged victims to deposit increasing amounts of money.

However, when victims tried to withdraw their funds, the scammers blocked the requests. They often demanded extra “taxes” or “fees” before releasing the money. Of course, even after the victims paid, the funds remained inaccessible.

Over $61M Traced and Seized

After exploiting victims, the criminals quickly moved the money through multiple cryptocurrency wallets. This tactic helped them hide the source and ownership of the stolen funds. Investigators tracked these transactions and identified several wallets connected to the scheme. Some of those wallets still held substantial amounts of victims’ money, making seizure possible.

According to Attorney Ellis Boyle, the seizure of $61 million linked to cryptocurrency fraud proves that criminals do not ultimately win. Additionally, this case shows how law enforcement continues to adapt to the digital age. By using advanced blockchain analysis tools and working with industry partners, agencies can trace and freeze illicit crypto assets more effectively.

Moreover, the $61 million seizure reflects a broader trend. In recent years, U.S. authorities have stepped up efforts to combat crypto fraud and romance-based investment scams. They have used asset forfeiture to disrupt criminal networks and recover stolen funds.

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