US Agents Clamp Down on Major Pig Butchering Crypto Scam

US federal agents have made a significant breakthrough in combating cryptocurrency scams with the seizure of over $61 million in USDt linked to a large-scale 'pig butchering' investment scam.

The scam, which has been gaining traction in recent months, involves hackers posing as romantic partners and claiming to possess expertise in trading. They then direct their victims towards fake crypto sites that promise unusually high returns, only to block withdrawals and demand extra fees when the victims attempt to retrieve their money.

The investigation was led by Homeland Security Investigations (HSI), who tracked the funds of the victims through various wallets used for laundering proceeds. The HSI worked closely with Tether, a stablecoin issuer, which provided assistance in freezing and recovering the assets.

The case highlights the growing trend of crypto fraud involving romance scams and fake trading opportunities. According to data from Chainalysis' 2026 Crypto Scam Report, crypto scam losses last year reached $17 billion, with AI-influenced impersonation and social engineering scams increasing by 1,400% year-on-year.