U.S. Department of Justice Seizes $61 Million in Tether Linked to Cryptocurrency Investment Scams
In a significant crackdown on cryptocurrency fraud, the U.S. Department of Justice (DoJ) has announced the seizure of $61 million in Tether (USDT) associated with fraudulent investment schemes, commonly referred to as pig butchering scams. These schemes involve cybercriminals cultivating trust with victims through social media and dating platforms, ultimately persuading them to invest in bogus cryptocurrency ventures.
The seized funds were traced to cryptocurrency addresses used to launder proceeds from these scams. According to the DoJ, perpetrators create fake investment platforms displaying fabricated portfolios with unusually high returns to entice victims into investing more money. When victims attempt to withdraw their funds, they are often asked to pay additional fees, further extracting money from them.
Homeland Security Investigations (HSI) Charlotte Acting Special Agent in Charge Kyle D. Burns emphasized the global nature of these crimes, stating that criminal actors and professional money launderers use cyber-enabled fraud schemes to swindle victims and conceal their ill-gotten gains. HSI special agents work diligently to trace the illicit proceeds of crime across the globe to disrupt and dismantle the transnational criminal organizations that seek to defraud hardworking Americans.
These scams are often orchestrated by cybercrime syndicates operating primarily in Southeast Asia. Individuals are lured with promises of high-paying jobs, only to find themselves trafficked into scam compounds where their passports are confiscated. Under threat of brutal consequences, they are coerced into conning victims online by posing as charming strangers or brokers on investment platforms.
Once victims transfer their money to cryptocurrency wallets controlled by the scammers, the funds are quickly routed through multiple wallets to obscure their origin, making it challenging for authorities to trace and recover the stolen assets.
In response to these illicit activities, Tether has frozen approximately $4.2 billion in assets linked to criminal activity to date, including nearly $250 million related to scam networks since June 2025 alone.
This seizure underscores the ongoing efforts by U.S. authorities to combat cryptocurrency-related fraud and protect investors from sophisticated online scams.
