DOJ Takes $225M in USDT Tied to Pig Butchering Crypto Scams
On Wednesday, U.S. federal authorities announced the seizure of $225.3 million worth of Tether’s USDT stablecoin– the largest crypto forfeiture to date connected to so-called ‘pig butchering’ rip-offs. According to the U.S. Department of Justice (DOJ), the funds were connected to an enormous network of confidence scams. Following an extensive investigation, officials discovered that the stolen … The post DOJ Takes $225M in USDT Connected to Pig Butchering Crypto Frauds appeared initially on UNLOCK Blockchain.
On Wednesday, U.S. federal authorities announced the seizure of $225.3 million worth of Tether’s USDT stablecoin– the largest crypto loss to date tied to so-called ‘pig butchering’ frauds. According to the U.S. Department of Justice (DOJ), the funds were linked to an enormous network of self-confidence scams. Following an extensive investigation, officials found that the taken crypto had actually been laundered through the OKX exchange after being defrauded from unwary investors.The DOJ said all the taken funds remained in USDT, the stablecoin provided by crypto company Tether and currently the third-largest digital property by market capitalization.Tether had at first revealed the existence of an examination back in 2023, specifying at the time that the illegal use of its token appeared linked to human trafficking.In a declaration released Wednesday, the DOJ described: ‘The problem declares that the cryptocurrency addresses that held the over $225.3 million in cryptocurrency were part of a sophisticated blockchain-based money laundering network that carried out hundreds of thousands of transactions, and was used to conceal the nature, source, control, and ownership of earnings derived from cryptocurrency financial investment fraud.’The DOJ further noted, ‘The scam operators distributed profits throughout a substantial group of cryptocurrency addresses and accounts on the blockchain to hide the source of the illegally obtained funds.’The DOJ grievance was announced the same day that authorities in New York stated they had seized $140,000 and frozen another $300,000 connected to a cryptocurrency financial investment rip-off using phony ads on social media platforms. The scheme caused more than $1 million in losses, with more than 300 victims identified.Tether CEO Paolo Ardoino emphasized the business’s dedication to regulatory partnership, stating: ‘We are setting the standard for compliance in digital assets, and leading efforts to make sure stablecoins are not misused by bad stars.’Tether Acknowledged by DOJ for Assistance in $225M Seizure Linked to Pig Butchering FraudLearn more: https://t.co/0EgEAIrYwn— Tether (@Tether_to) June 18, 2025According to court documents, Tether, alongside OKX, informed the U.S. Secret Service in 2023 after recognizing over 144 accounts on the exchange linked to these elaborate scams schemes, commonly described as ‘pig butchering.’These frauds, which have their roots in China, include scammers acquiring a victim’s trust– often through fake social networks profiles and emotional control– before encouraging them to purchase deceitful crypto plans. The name originates from the concept of ‘fattening’ the victim before taking their funds.Authorities traced the 144 flagged accounts to IP addresses in the Philippines. Collectively, they were responsible for moving over $3 billion in cryptocurrency within a year, which federal representatives described as ‘high-volume money laundering,’ according to court filings.During an interview going over the civil loss case, Pirro avoided concerns on whether the Justice Department would adopt a similar approach to scrutinizing United States President Donald Trump’s connections to the crypto industry. She pointed out the current passage of the GENIUS Act, an expense to regulate stablecoins, in the senate, but said the DOJ would be focused on ‘individuals who are being scammed out of their life cost savings.’USDT, a dollar-pegged stablecoin, plays an important role in the crypto community, enabling traders to move in and out of positions with ease. As one of the most extensively used digital assets, it works as a fundamental pillar of the crypto economy.Tether, now headquartered in El Salvador, has long cooperated with law enforcement. The business said it has frozen $2.7 billion in USDT connected to criminal activity to date.The post DOJ Seizes $225M in USDT Tied to Pig Butchering Crypto Frauds appeared initially on UNLOCK Blockchain.
