The U.S. Department of Justice (DoJ) recently announced the seizure of $61 million in Tether, a stablecoin, which was allegedly linked to fraudulent cryptocurrency schemes known as pig butchering. These confiscated funds were tracked to cryptocurrency addresses utilized for laundering illicit proceeds stolen from individuals targeted by these investment scams.
HSI Charlotte Acting Special Agent in Charge Kyle D. Burns emphasized that “Criminal actors and professional money launderers use cyber-enabled fraud schemes to swindle their victims and conceal their ill-gotten gains.” He further stated that HSI special agents are dedicated to tracing these illegal funds globally to disrupt and dismantle transnational criminal organizations that aim to defraud people.
These cybercrime operations typically involve threat actors establishing romantic relationships with victims after contacting them on dating and social media platforms. The individuals carrying out these scams are often trafficked into illicit compounds, primarily in Southeast Asia, under false promises of lucrative employment.
Once within these syndicates, their passports are confiscated, and they are coerced into defrauding victims online. They pose as charming strangers or investment brokers on fake platforms, facing severe repercussions if they refuse. The ultimate objective is to persuade unsuspecting users to invest significant amounts of money into fraudulent cryptocurrency schemes.
The DoJ reported that these deceptive platforms displayed fabricated investment portfolios, showing unusually high returns to entice victims into investing more capital. Victims only realize the deception when they attempt to withdraw their funds, at which point they are asked to pay additional fees, a tactic designed to extract even more money.
The department explained that “Once the victims’ money transferred to a cryptocurrency wallet under the scammers’ control, the crooks quickly routed that money through many other wallets to hide the nature, source, control, and ownership of that stolen money.”
In a related announcement, Tether confirmed its support in the seizure and stated that it has frozen approximately $4.2 billion in assets connected to illicit activities to date. This includes nearly $250 million linked to scam networks since June 2025 alone.
