North Carolina Authorities Seize $61M in Illicit Crypto Funds Linked to Romance-Based Scams

A multi-agency effort led by Homeland Security Investigations (HSI) has resulted in the seizure of over $61 million in Tether (USDT), a centralised stablecoin tied to the US dollar. This is part of a larger crackdown on 'pig butchering' scams, which typically involve romance-based fraud and fake high-return investments.

The money was stored in several cryptocurrency wallet addresses used for laundering purposes, and authorities worked directly with Tether to freeze and transfer the assets. The Department of Justice noted that this highlights the importance of collaboration between issuers and law enforcement in combating crypto-enabled fraud.

According to experts, the recoverability of stablecoins like USDT due to their centralised structure makes it easier for authorities to track and seize illicit funds. However, prevention through due diligence is still crucial, especially for novice investors who may be targeted by romance-investment hybrids.