The United States federal agents in North Carolina have seized over $61 million worth of Tether (USDT) associated with a large-scale ‘pig butchering’ cryptocurrency scam. The scheme, which targeted victims through fabricated online relationships and fraudulent trading platforms, has been a growing concern in the crypto community.
The Anatomy of a ‘Pig Butchering’ Scam
According to the U.S. Attorney’s Office for the Eastern District of North Carolina, the scammers posed as romantic partners and touted their supposed trading expertise to lure unsuspecting victims. They directed victims to convincing but fake crypto sites that displayed unrealistic returns, enticing them to invest more. Once the victims tried to withdraw their funds, the scammers blocked the withdrawals and demanded additional fees, effectively trapping the victims’ money.
Investigation and Seizure
Homeland Security Investigations (HSI) traced the victims’ funds through multiple wallets used to launder the proceeds. This led to the identification of several addresses that still held substantial amounts of the stolen funds, which were then seized and made subject to forfeiture. Tether, the issuer of the USDT stablecoin, cooperated with the investigation, assisting in the transfer of the seized assets.
Rise of Crypto Fraud
This case is part of a broader trend of increasing crypto fraud, particularly ‘pig butchering’ schemes. Data from Chainalysis’ 2026 Crypto Scams report indicates that crypto scam losses reached $17 billion in 2025, with AI-driven impersonation and social engineering scams seeing a 1,400% year-on-year increase. These scams have become far more sophisticated and profitable than traditional phishing or giveaway schemes.
Legal Consequences
US prosecutors have been taking a tough stance on these crimes. 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. This reflects the growing severity with which courts are treating this category of crime.
Looking Ahead
As crypto fraud continues to evolve, regulatory bodies and law enforcement agencies are stepping up their efforts to combat these schemes. The cooperation between stablecoin issuers like Tether and federal authorities is a positive sign, indicating a collaborative approach to securing the crypto ecosystem. However, the sophistication of these scams underscores the need for ongoing vigilance and education among crypto users to prevent falling victim to such schemes.
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