Federal prosecutors in the Eastern District of North Carolina announced the seizure of more than $61 million worth of Tether (USDT) in one of the largest cryptocurrency asset forfeiture actions linked to a romance investment fraud known as the “pig butchery” scheme.
North Carolina federal government seizes $61 million in crypto
The operation demonstrates growing U.S. efforts to trace and recover digital assets used in complex fraud and money laundering networks.
The US Department of Justice said the seized funds came from several cryptocurrency wallets controlled by criminal actors who lured victims to fraudulent cryptocurrency trading platforms after establishing trust through purported romantic relationships.
Once victims deposited money into these fake platforms, the operators allegedly prevented withdrawals or demanded fake “fees” and “taxes” to extract more funds. Investigators from Homeland Security Investigations in Raleigh, North Carolina, tracked the flow of stolen proceeds through a network of wallets and identified accounts still containing large balances that were subject to seizure and confiscation.
“The seizure of a colossal $61 million…shows that in the Eastern District of North Carolina, cheaters never win,” said U.S. Attorney Ellis Boyle, highlighting the District’s Asset Forfeiture Team’s work with HSI to disrupt the fraud ring.
The DOJ also acknowledged Tether’s assistance in facilitating the transfer of assets once targeted wallets were identified.
Pig slaughter scams, a hybrid of romance fraud and investment deception, have become a growing threat globally, with victims often recruited on social media or dating apps before being directed to professional-looking but fake cryptocurrency investment portals. Once funds are sent, victims find themselves unable to withdraw, leaving law enforcement to track down and recover the proceeds.
The $61 million seizure adds to a broader trend of high-profile crypto confiscations by U.S. authorities in recent years.