Federal agents in North Carolina have seized over $61 million in Tether (USDt) linked to a large-scale “pig butchering” cryptocurrency investment scam. The U.S. Attorney’s Office stated that scammers posed as romantic partners with trading expertise to lure victims to fake platforms. The investigation, aided by Tether, traced funds across multiple wallets used to launder proceeds before the seizure.
US Federal agents in North Carolina seized more than $61 million worth of USDt tied to a large-scale “pig butchering” crypto investment scam. The scammers preyed on victims through fake online relationships and fraudulent trading platforms.
According to the US Attorney’s Office for the Eastern District of North Carolina, the perpetrators posed as romantic partners and claimed to have special trading expertise. They directed victims to convincing but fake crypto sites that displayed fictitious portfolios showing unusually high returns.
Prosecutors noted that Tether cooperated in the investigation. “The Department of Justice and HSI acknowledges Tether for its assistance in transferring these assets,” the release states.
This case aligns with explosive growth in crypto fraud, including pig butchering schemes. Data from Chainalysis’ 2026 Crypto Scams report found that crypto scam losses in 2025 reached $17 billion.
Artificial intelligence-driven impersonation and social engineering scams increased by 1,400% year-on-year. These schemes have become far more profitable than traditional phishing or giveaway scams.
In one December 2025 incident, a Bitcoin investor lost his retirement savings after being groomed by an online “trader”. The scammer used AI-generated images and a fabricated persona to build trust before convincing the victim to move coins to a fake platform.
US prosecutors have started securing major sentences against perpetrators of these networks. In February, a key figure in a pig butchering-linked crypto laundering operation involving over $70 million was sentenced to 20 years in federal prison.
