USDT Fraud: The Seizure of $61 Million in Crypto Scam Crackdown
In a significant enforcement action, federal agents in North Carolina have seized over $61 million in USDT linked to a notorious ‘pig butchering’ crypto scam. This operation reflects a growing concern over crypto scams and highlights the collaborative efforts between law enforcement and crypto companies.
Understanding the ‘Pig Butchering’ Crypto Scam
The ‘pig butchering’ scam is a sophisticated fraud that combines elements of romance scams and fake trading platforms. Scammers build trust with victims through fabricated online relationships, presenting themselves as experienced traders. They lure victims into investing in fraudulent crypto sites that showcase fictitious portfolios with high returns, only to block withdrawals and demand additional fees later.
The Role of USDT in the Scam
USDT, a popular stablecoin, was extensively used by scammers to facilitate this fraud. Investigators from Homeland Security traced the laundered funds across multiple digital wallets, eventually identifying addresses with substantial amounts that were subsequently seized.
Tether, the issuer of USDT, cooperated with authorities, assisting in the transfer of seized assets. This collaboration underscores the role of stablecoin issuers in combating crypto crime.
Rising Threat of Crypto Scams
Crypto fraud, including ‘pig butchering’ schemes, is on the rise. Chainalysis data from 2026 indicates that crypto scam losses in 2025 reached a staggering $17 billion. The rise of AI-driven scams, which saw a 1,400% increase, is a significant concern for both investors and regulators.
Legal Actions and Sentences
US prosecutors are actively pursuing perpetrators of these scams. In a notable case, a key player in a $70 million crypto laundering operation received a 20-year federal prison sentence, reflecting the judiciary’s stance on such crimes.
The crypto community must remain vigilant and informed to protect itself from evolving threats. Ongoing cooperation between law enforcement and industry players is crucial in mitigating these risks and preserving the integrity of the crypto market.
