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U.S. Seizes Over $61 Million in Tether Linked to ‘Pig‑Butchering’ Scam

HSI tracing identified wallets holding victim funds, with Tether’s cooperation enabling the transfer to government control.

Overview

  • The U.S. Attorney’s Office for the Eastern District of North Carolina announced the seizure in a federal forfeiture action.
  • The investigation began after a victim report to the HSI Tip Line in Raleigh, leading agents to trace stolen USDT through multiple wallets.
  • Prosecutors say criminals cultivated online romantic relationships to funnel victims onto professional‑looking but fake crypto trading platforms.
  • When victims tried to withdraw, operators allegedly blocked access or demanded sham fees and taxes to extract more money.
  • Officials describe the recovery as among the largest tied to this fraud type and part of an ongoing U.S. effort to disrupt crypto‑enabled schemes.