- Authorities seized $61 million in USDT tied to crypto investment fraud.
- Victims were lured through romance scams into fake crypto trading platforms.
- Investigators traced stolen funds across multiple blockchain wallets before seizing assets.
Federal prosecutors in North Carolina have confirmed the seizure of more than $61 million in cryptocurrency tied to an alleged digital asset investment fraud operation.
The U.S. Attorney’s Office for the Eastern District of North Carolina said the funds were held in Tether (USDT), a U.S. dollar-pegged stablecoin widely used across global crypto markets. Investigators traced the assets to blockchain addresses allegedly connected to laundering proceeds from so-called “pig butchering” scams.
The seized funds remain under federal control as legal proceedings continue.
How the Scheme Allegedly Worked
According to court filings, victims were approached online and gradually drawn into conversations designed to build trust, often under the guise of a romantic relationship. After establishing rapport, the perpetrators introduced what they claimed were highly profitable cryptocurrency trading strategies.
Victims were then directed to fraudulent trading platforms that closely mimicked legitimate crypto exchanges. These websites displayed fabricated portfolio balances and unusually high returns in order to encourage additional deposits.
When individuals attempted to withdraw funds, they were reportedly blocked. Some were told they needed to pay additional “fees” or “taxes” to unlock their accounts. Investigators allege this tactic was used to extract even more money before cutting off communication.
Blockchain Tracing and Asset Recovery
Once funds were deposited into wallets controlled by the alleged fraudsters, the crypto assets were quickly moved through multiple addresses in an effort to obscure their origin and ownership.
The case began after Homeland Security Investigations (HSI) in Raleigh received a complaint through its public tip line. Agents and analysts traced the movement of funds across several blockchain wallets and identified addresses still holding substantial amounts of suspected victim proceeds.
Authorities subsequently seized more than $61 million worth of USDT from those wallets. The funds are now subject to forfeiture proceedings.
Rising Trend in “Pig Butchering” Scams
Law enforcement agencies across the United States have reported a sharp rise in complaints linked to these operations over the past two years.
Chainalysis Data from 2025 shows that pig butchering scams are becoming larger and more damaging than before. The average amount lost per scam jumped from $782 in 2024 to $2,764 in 2025, marking a 253% increase in just one year.
The firm’s research showed that this scam category remained one of the most profitable and prevalent forms of crypto fraud, with operators increasingly leveraging automated tools, social platforms, and professional networks to attract and exploit victims.
Related: White House Says President Trump Will Not Pardon Sam Bankman-Fried
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