- The U.S. Department of Justice seized $61 million in Tether linked to “pig butchering” cryptocurrency scams.
- Scammers use social engineering on dating apps to build trust before funneling victims into fake investment platforms.
- Tether has frozen nearly $250 million tied to scam networks since June 2025, part of $4.2 billion in total illicit assets frozen to date.
In a major crackdown on financial crime, the U.S. Department of Justice announced this week the seizure of $61 million in Tether connected to sophisticated “pig butchering” cryptocurrency fraud schemes. The funds were traced to addresses used for laundering proceeds stolen from victims of these investment scams.
According to the DoJ, criminal actors use cyber-enabled fraud to swindle victims and conceal their gains. “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,” said HSI Charlotte Acting Special Agent in Charge Kyle D. Burns.
Threat actors typically cultivate romantic relationships with targets on dating and social media apps. These scams are often run by individuals trafficked into compounds in Southeast Asia and forced to work under coercion.
The syndicates then coerce these individuals into posing as charming strangers or brokers on fraudulent investment platforms. Their goal is to coax users into depositing money into schemes that display fabricated, high-return portfolios.
Victims only realize the deception when attempting to withdraw their funds and facing additional fee demands. “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.
Consequently, Tether has taken action against such illicit networks. In a coordinated announcement, the company stated it has frozen nearly $250 million related to scam networks since June 2025 alone.
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