US DOJ Seizes $61 Million in USDT Linked to Pig Butchering Crypto Scam

The US Department of Justice has made another significant move against crypto scams with the seizure of over $61 million in Tether (USDT) linked to a pig butchering scam.

Pig butchering scams, which typically start as romance scams before shifting into fake crypto trading opportunities, have been on the rise globally. These schemes often use AI-generated images and fake websites to trick victims into sending their funds.

According to investigators, the scammers would pose as romantic partners online and build trust with their victims before directing them to fake trading platforms. Once the victims had invested, the scammers would block withdrawals and demand more fees.

The authorities were able to track the money through several crypto wallets and seize the funds, which is a significant development in the fight against crypto scams. This case highlights the importance of stablecoin issuers working with authorities to freeze and recover funds moved through U.S. dollar-pegged tokens such as Tether's USDt.