Secret Service Seizes $225 Million in Tether Linked to Global Pig Butchering Scam
In one of the largest crypto-related actions in US history, the Department of Justice has filed a civil forfeiture complaint to seize $225.3 million in USDT, the dollar-pegged stablecoin issued by Tether.
The funds were allegedly tied to a global fraud ring operating a sophisticated “pig butchering” scam, which has affected hundreds of victims worldwide.
How A Web Of Crypto Transactions Led Investigators To OKX
The investigation began after US authorities traced thousands of blockchain transactions, eventually identifying wallets containing the illicit funds.
These wallets, according to the DOJ, had laundered the assets through the crypto exchange OKX before consolidating them in Tether.
Officials said over 400 individuals were lured by what appeared to be genuine crypto investment opportunities, only to be conned into sending increasingly large sums of money.
The tactic, commonly referred to as “pig butchering,” involves building trust with victims before draining their finances over time.
Stablecoin issuer Tether confirmed in a blog post that it had cooperated with law enforcement during the investigation, which relied heavily on blockchain analysis and coordination between the DOJ, FBI, and US Secret Service.
Billions Lost In 2024 As Crypto Fraud Escalates
Assistant Attorney General Matthew Galeotti revealed the shocking extent of crypto-linked fraud, citing FBI data that estimated over $9.3 billion in losses in 2024 alone.
Of that, $5.8 billion was directly connected to fraudulent crypto investment schemes.
Galeotti said,
“Today’s civil forfeiture complaint against over $225 million worth of cryptocurrency is the Department’s latest action in our ongoing fight against cryptocurrency fraud schemes.”
He also noted,
“These schemes harm American victims and undermine investor confidence in the cryptocurrency ecosystem.”
The seizure, which officials say is the largest ever tied to a single scam involving digital assets, is part of a broader campaign to dismantle transnational criminal operations that often target older, more vulnerable investors.
Civil Forfeiture Targets The Money, Not The Criminals—Yet
In a press briefing, Interim US Attorney Jeanine Pirro explained that the legal move targets the assets themselves, rather than any named individual—at least for now.
The investigation remains ongoing, and no criminal charges have been announced in connection with the seized funds.
Pirro said the DOJ intends to use the recovered assets to help compensate victims of the scheme.
While further details were not disclosed, officials stressed the personal toll of the scam, especially on elderly victims who lost their life savings.
Crypto Scams Expand Beyond One Case
The $225 million seizure is not an isolated incident.
Last week, the DOJ secured guilty pleas from five individuals who helped launder $36 million for a Cambodia-based crypto fraud ring.
In a separate case last month, a federal court ordered the forfeiture of $2.5 million linked to another online investment scam.
Meanwhile, a separate operation in New York led to the seizure of $140,000 and the freezing of $300,000 more, stemming from a fake social media investment scheme that defrauded more than 300 victims.
In another case, the FBI charged Jeremy Jordan-Jones, the founder of a fraudulent blockchain startup, for allegedly swindling over $1 million by making false claims about partnerships with sports franchises and tech firms.
Is Crypto Becoming A Playground For Scammers?
The sheer scale and sophistication of crypto scams have raised concerns about the space becoming increasingly fertile ground for exploitation.
FBI Director Chad Yarbrough warned,
“Cryptocurrency has become an enticing means to cheat investors.”
With over 5,400 victims notified since January 2024, authorities are ramping up public awareness efforts.
The FBI continues to urge the public to be wary of unsolicited investment offers, particularly those circulated via social media or messaging apps.
The Bigger Question Behind The Seizure
What does it say about the future of decentralised finance when law enforcement must chase stablecoins through a maze of exchanges, botnets, and fake investment apps?
While the technology promises freedom from intermediaries, it has also handed new tools to fraudsters.
The real challenge isn’t just about recovering lost millions—it’s about rebuilding trust in a system that was meant to be trustless.
Catherine
Aaron
Hui Xin
Davin
Jixu