US Authorities Crack Down on Pig Butchering Scams with $61M Stablecoin Seizure

On February 25, 2026, federal agents in the US seized over $61 million in Tether (USDT) stablecoins as part of an ongoing investigation into a 'pig butchering' cryptocurrency investment scam.

Pig butchering scams combine romantic scams with fake Bitcoin trading schemes. Scammers build trust with victims before convincing them to invest in exclusive crypto opportunities, claiming exceptional trading skills that yield large profits.

The scammers use fake platforms to show fake portfolios with big returns and push victims to put in more money. However, the operators eventually disappear, leaving victims unable to withdraw their funds or pay additional fees.

The term 'pig butchering' refers to the act of fattening up victims with trust before taking advantage of them financially. In one case, scammers used this tactic to get people to send them money, which they then laundered through multiple cryptocurrency wallets.

Thanks to a partnership between law enforcement and stablecoin issuers like Tether, authorities are getting better at tracking and recovering stolen funds. This confiscation is part of a broader effort to crack down on pig butchering scams and other forms of crypto-related fraud.