US Seizes $61M in Tether Linked to Pig Butchering Scam

Federal agents have seized over $61 million worth of Tether cryptocurrency connected to a sophisticated romance-based investment fraud scheme. The U.S. Attorney’s Office for the Eastern District of North Carolina announced the seizure following an investigation into so-called pig butchering scams targeting American victims.

🚨 US Prosecutors Seize $61 Million in USDT Linked to "Pig Butchering" Scams

Federal prosecutors in the Eastern District of North Carolina have announced the seizure of over $61 million in USDT, with the funds being connected to a widespread "pig butchering" cryptocurrency…

— 0xzx (@0xzxcom) February 25, 2026

Homeland Security Investigations (HSI) traced the seized funds to cryptocurrency wallets allegedly used to launder stolen proceeds. The case began when a victim reported alleged investment fraud through the HSI Tip Line. Agents subsequently followed the digital money trail through multiple wallets.

U.S. Attorney Ellis Boyle emphasized the significance of the recovery. The seizure represents a major victory against cryptocurrency fraud operations targeting vulnerable individuals through emotional manipulation and fake trading platforms.

The seizure of a staggering $61 Million dollars’ worth of funds linked to cryptocurrency fraud shows that, in the Eastern District of North Carolina, cheaters never win

Boyle stated.

Inside the Pig Butchering Operation

Criminal actors executed a methodical approach to defrauding victims. They first established trust by posing as romantic interests, cultivating relationships over time before introducing cryptocurrency investment opportunities.

The scammers claimed expertise in generating substantial profits through crypto trading. They directed victims to fraudulent trading platforms designed to mimic legitimate exchanges in both name and visual appearance.

These fake platforms displayed fabricated investment portfolios with unusually high returns. The inflated numbers served one purpose: convincing victims to invest increasingly larger sums of money.

When victims attempted to withdraw funds, they encountered insurmountable obstacles. Scammers presented various excuses, including demands for “taxes” or “fees” to release the money. These tactics extracted even more funds from already victimized individuals.

Once money entered wallets controlled by the criminals, they rapidly moved funds through numerous additional wallets. This layering technique obscured the origin, ownership, and control of the stolen cryptocurrency.

HSI Charlotte Acting Special Agent in Charge Kyle D. Burns highlighted the investigative challenges posed by such schemes.

Criminal actors and professional money launderers use cyber-enabled fraud schemes to swindle their victims and conceal their ill-gotten gains

Burns said

Federal Crackdown on Crypto Crime Continues

The Tether seizure arrives amid intensified federal efforts to combat cryptocurrency-related criminal enterprises. Just days earlier, on January 30, 2026, the U.S. government secured legal ownership of over $400 million in assets tied to the Helix darknet mixing service.

The U.S. Department of Justice announced that last week it obtained legal title to over $400 million in cryptocurrencies, real estate, and monetary assets related to the darknet mixing service Helix. Operator Larry Dean Harmon pleaded guilty to conspiracy to commit money…

— Wu Blockchain (@WuBlockchain) January 30, 2026

Judge Beryl A. Howell of the District Court for the District of Columbia entered a final forfeiture order on January 21. The order formally transferred seized cryptocurrencies, real estate, and monetary assets to federal authorities.

Larry Dean Harmon, 41, of Akron, Ohio, operated Helix between 2014 and 2017. The mixing service processed approximately 354,468 bitcoin during its three-year operation. At transaction time, this volume equaled roughly $311 million.

Harmon pleaded guilty to conspiracy to commit money laundering in August 2021. He received a 36-month prison sentence in November 2024, along with three years of supervised release. The court imposed a forfeiture judgment exceeding $311 million.

The Helix forfeiture ranks among the largest cryptocurrency seizures in U.S. law enforcement history. Multiple federal agencies coordinated over several years to bring the investigation to its conclusion.

Meanwhile, the Eastern District of North Carolina case remains ongoing. Investigators continue tracing funds through the blockchain. Several wallets identified in the investigation still contained substantial victim funds subject to additional seizure and forfeiture proceedings.

Both cases underscore federal authorities’ growing capability to track cryptocurrency transactions across complex laundering networks. Despite efforts to obscure fund movements, blockchain analysis tools have enabled investigators to follow digital money trails with increasing precision.