Homeland Security Investigations followed, revealing that the money passed through several crypto wallets. Investigators said they found wallets still holding large amounts and seized the funds.
Federal agents in North Carolina seized more than $61 million in USDT tied to a major pig butchering crypto scam. Investigators said the scheme worked by gaining victims’ trust through fake online relationships. After that, the scammers directed them to fake trading platforms and took their money.
According to the latest crypto news from the DOJ, federal agents in North Carolina seized roughly $61 million in Tether (USDT) linked to a pig butchering scam.
The agents said the scam artists would first contact people online, pretending to be romantic partners. After building rapport and trust, the duo would then claim their expertise in trading to lure victims into sending them money via fake website links.
As per DOJ news, the scammers would later on send the victims to fake crypto sites or imitations of legitimate sites. The platforms showed made-up profits and account balances, leading people to believe their investments were growing. Because of that, many sent in more money. When victims tried to withdraw their money, the scammers blocked the withdrawals and demanded more fees.
Meanwhile, Homeland Security Investigations traced the money through several crypto wallets. Investigators said they found wallets still holding large amounts and seized the funds.
They said the Justice Department and Homeland Security Investigations acknowledged the company for helping transfer the seized funds.
As a result, the case became another clear example of stablecoin issuers working with authorities to freeze and recover funds moved through U.S. dollar-pegged tokens such as Tether’s USDt.
Authorities and analysts said pig butchering scams were spreading quickly in recent crypto news. These schemes usually start like romance scams, then shift into fake crypto trading opportunities to pull victims in.
At the same time, a recent Chainalysis crypto news breakdown highlighted the same issue and noted that scammers caused $17 billion in losses in 2025.
In a 2026 report dubbed the crypto scams report, Chainalysis noted a sharp rise in AI-powered impersonation and other social engineering scams. As per the report, cases rose by 1,400% from last year.
It added that these scams were making more money than older phishing and giveaway tricks.
Meanwhile, one crypto investor told reporters that online scams cost him his retirement savings. He said that he trusted an online crypto trader and it cost him dearly. According to the investor, the scammer pretended to be believable by using AI-generated images.
Once the scammer had his trust, he convinced the investor to transfer his coins to what appeared to be a real investment platform. It was actually a fake site created to steal the funds.
Recent crypto news U.S. prosecutors have begun winning major prison sentences against people tied to these fraud networks. That shift shows law enforcement is not only tracking the money, but also pushing for tougher punishment in court.
In February, a central figure in a pig butchering-linked crypto laundering operation involving more than $70 million received a 20-year federal prison sentence. Prosecutors said the outcome reflected how seriously courts now view this kind of financial crime.
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