Coinbase Assists U.S. Authorities in $225M Stablecoin Seizure Linked to “Pig Butchering” Scam
U.S. crypto exchange Coinbase has confirmed that it supported the U.S. Secret Service in recovering approximately $225 million in stolen Tether (USDT), tied to a massive scams operation referred to as a “pig butchering” scam. These scams normally include wrongdoers pretending to develop a expert or romantic relationship with victims. Once trust is developed, the fraudsters encourage their targets to deposit funds into phony crypto platforms. After draining adequate funds, they vanish without a trace.
Stolen Funds Traced and Taken
As part of the investigation, Tether froze 39 wallets linked to pig butchering schemes in late 2023. Coinbase then collaborated with police to trace the stolen funds on-chain and identify affected users. The exchange discovered that 130 of its customers had collectively lost over $2 million to the scam. Following these efforts, U.S. authorities seized $225 million in USDT connected to the deceitful activity. Tether responded by burning the confiscated tokens on-chain and minting a new batch of equal value to support the restitution process. The FBI is now leading the effort to return funds to confirmed victims. Those affected must provide transaction records from Coinbase or other platforms to demonstrate they were targeted.
U.S. federal agencies, including the FBI and U.S. Secret Service, continue to prioritize pig butchering scams as a significant threat in the evolving crypto crime landscape.
Tether Earns DOJ Praise Over Enforcement Aid
In an associated development, the U.S. Department of Justice (DOJ) praised Tether’s cooperation in a major enforcement operation. The stablecoin issuer assisted authorities by leveraging blockchain analytics to freeze access to illicit funds and actively supported the enforcement process. Tether stated that the operation reflects its broader compliance efforts and ongoing commitment to transparency. According to the company, it has now frozen over $2.7 billion in USDT linked to suspicious activity, collaborating with more than 255 enforcement agencies across 55 countries. In March 2025, Tether collaborated with the U.S. Secret Service to freeze $23 million in USDT tied to the sanctioned Russian exchange Garantex. It also worked with TRM Labs, the Tron network, and Spanish authorities to help disrupt over $100 million in illegal funds.
The post Coinbase Assists U.S. Authorities in $225M Stablecoin Seizure Linked to “Pig Butchering” Scam appeared first on Cointab.
