U.S. Authorities Seize $61 Million in Crypto Tied to Pig Butchering Scam

Highlights:

• Federal agents confiscate $61 million in cryptocurrency linked to fraud.
• Victims were lured to fake investment platforms in the pig butchering scheme.
• Homeland Security aided in tracing funds across several crypto wallets.

Federal prosecutors have announced the seizure of $61 million worth of USDT in North Carolina. The seizure stems from an investigation of a fraud scheme known as the “pig butchering scam.” This scheme has become a major concern with scammers targeting victims via fraudulent cryptocurrency trading platforms.

The case was initiated when one of the victims reported the potential fraud to Homeland Security Investigations (HSI). Officials were able to trace the money of the victim into different cryptocurrency wallets involved in a broader money laundering scam. In addition, these wallets held huge amounts of money, all tied to the activities of the scammers.

😧 JUST IN: North Carolina prosecutors seize $61M in USDT tied to ‘pig butchering’ scam, per report.

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— GSMART_MONEY (@GSMART_money) February 25, 2026

How the Pig Butchering Scam Worked

The pig butchering scam deceives the victims in false investment schemes in the name of romance. First, scammers create trust by posing as admirers of a romantic relationship. After gaining the trust, they persuade victims that they can assist them to gain huge profits trading in cryptocurrencies.

In this case, victims were referred to fake trading platforms that resembled genuine sites. These websites displayed impressive, false investment portfolios, persuading victims to spend additional funds. There were excuses about a required tax or fee when victims tried to withdraw the money. This tactic further plunged them into additional financial losses as the scammers used these funds to fuel their activities.

As soon as the funds fell into the hands of the scammers, they soon moved them through several wallets to cover the sources and ownership. This complicated process made tracing the funds a hard task, but investigative efforts by HSI agents uncovered this scheme.

Authorities Join Forces to Tackle Crypto Fraud

The investigation involved the collaborative work of the U.S. Attorney’s office and HSI. The seizure adds to the list of growing number of cryptocurrency fraud cases, which have been on the rise over recent years. Moreover, authorities are doing their best to disrupt these schemes and apprehend the criminals. 

U.S. Attorney Ellis Boyle highlighted the importance of the seizure, saying,

“The seizure of $61 million worth of funds associated with cryptocurrency scams indicates that in the Eastern District of North Carolina, criminals never win.”

Furthermore, authorities collaborated with Tether, the giant stablecoin issuer, in order to facilitate the transfer of the seized money. The collaboration of Tether played a vital role in tracking the criminal proceeds through the blockchain and bringing the perpetrators to justice.

A Growing Trend of Crypto-Related Crimes

The North Carolina seizure is among the largest of its kind. It also highlights the importance of increased attention to the cryptocurrency industry. Recently, the Department of Justice finalized the $400 million forfeiture associated with a darknet crypto mixer that was utilized to launder illegal funds.

The U.S. Department of Justice announced that last week it obtained legal title to over $400 million in cryptocurrencies, real estate, and monetary assets related to the darknet mixing service Helix. Operator Larry Dean Harmon pleaded guilty to conspiracy to commit money…

— Wu Blockchain (@WuBlockchain) January 30, 2026

Meanwhile, the issue of increased crypto-related crimes, such as phishing and social engineering scams, has also been a major challenge. Hackers stole approximately $370 million in crypto funds in January, and phishing was the most common strategy. During the same period, social engineering scams contributed to the largest financial losses.