US federal agents seized over $61 million in Tether’s USDT stablecoin linked to ‘pig butchering’ romance scams. A tip to Homeland Security Investigations led authorities to trace victim funds through cryptocurrency wallets involved in a complex laundering scheme. The civil forfeiture action follows multiple recent cases where Tether has assisted law enforcement in freezing illicit funds tied to fraud and terror financing.
US federal agents have seized over $61 million worth of the stablecoin USDT tied to fraud schemes. Investigators connected the funds to cryptocurrency addresses laundering criminal profits from so-called “pig butchering” scams.
Authorities stated that criminals often posed as romantic partners to gain victims’ trust. They then claimed to have unique methods for generating massive profits through cryptocurrency trading.
Victims were directed to fraudulent trading platforms mimicking legitimate ones. These fake sites displayed fabricated portfolios showing high returns to encourage larger investments.
When victims tried to withdraw funds, they were blocked or told to pay extra “taxes” or “fees.” These tactics were used to extract more money after the initial investment.
Scammers moved stolen funds rapidly through multiple wallets to conceal their source. Agents from Homeland Security Investigations traced a victim’s complaint through several wallets involved in the alleged fraud.
Tether has been involved in several recent financial crime investigations with international law enforcement. The stablecoin issuer acknowledged its role in the $61 million seizure, stating it assists in tracking, freezing, and seizing illicit funds.
In other recent actions, the US Department of Justice announced a July 2025 forfeiture involving $1.6 million in USDT allegedly tied to Gaza-based terror financing. Brazilian authorities also recognized Tether’s help in blocking about $6.2 million linked to a cross-border money-laundering scheme.
In June 2025, the Department of Justice and OKX sought to seize roughly $225 million in USDT allegedly linked to similar investment scams. The United States Secret Service also froze $23 million in March 2025 connected to transactions on the sanctioned exchange Garantex.
