US Authorities Seize $61 Million in USDT Linked to ‘Pig Butchering’ Scam

“Pig butchering” scams build trust through romantic or social relationships before inducing victims to transfer crypto assets to fraudulent trading platforms. The purported profits are fictitious, and victims are asked to pay taxes or fees when they try to withdraw funds. The case is significant because although USDT circulates on a blockchain, issuer Tether can still legally assist in freezing and transferring it, making asset recovery across multiple wallets possible.

On February 24, 2026, the U.S. Attorney’s Office for the Eastern District of North Carolina announced that federal agents had seized more than $61 million in USDT. Homeland Security Investigations’ Raleigh office opened the investigation after receiving a report from a victim and traced the funds through multiple laundering wallets to addresses that still held substantial balances. The Justice Department confirmed that Tether helped transfer the assets, which will now be subject to forfeiture proceedings.