Federal prosecutors in the Eastern District of North Carolina have announced the seizure of more than $61 million in USDT (Tether) tied to a large-scale cryptocurrency investment scam known as “pig butchering.”
The operation was led by Homeland Security Investigations (HSI) in Raleigh after a local victim filed a complaint that triggered a broader investigation.
How the Funds Were Tracked
Investigators used advanced blockchain analytics to trace the stolen funds through a complex web of wallets designed to obscure their origin.
Authorities confirmed that Tether cooperated with the investigation, assisting in freezing the illicit addresses and facilitating the transfer of seized assets.
The Department of Justice acknowledged the company’s role in helping prevent further movement of the funds.
What Is a “Pig Butchering” Scam?
The term refers to a method where scammers “fatten up” victims before stealing their money.
According to court filings, the scheme typically unfolds in five stages.
First, scammers build trust by posing as romantic interests or professional contacts through platforms like WhatsApp or dating apps. Once trust is established, they claim to possess insider knowledge of highly profitable crypto trading strategies.
Victims are then directed to fraudulent trading platforms designed to mimic legitimate exchanges. These sites display fake profits to encourage larger deposits.
When victims attempt to withdraw their gains, they are told they must first pay fabricated “taxes” or “fees.” After extracting as much money as possible, the scammers rapidly move the funds through multiple wallets to launder the proceeds.
Part of a Broader Crackdown
The $61 million seizure is part of an intensified federal crackdown on crypto-related fraud in 2026.
It follows a separate $400 million forfeiture in January 2026 connected to the darknet mixer Helix.
In North Carolina alone, authorities report having seized more than $15 million for victims since 2024, even before this latest recovery.
Bigger Picture
The case highlights both the scale of crypto-enabled fraud and the increasing ability of law enforcement to trace and freeze digital assets.
While scammers continue to exploit social engineering tactics, coordinated investigations and blockchain transparency are making it harder to permanently hide stolen funds.
