The USA Division of Justice has filed an enforcement motion because it strikes to grab greater than $225 million in cryptocurrency tied to large pig butchering scams.
On June 18, the U.S. Legal professional’s Workplace said it had filed a civil criticism within the U.S. District Court docket for the District of Columbia, looking for the forfeiture of roughly $225.3 million in crypto linked to large-scale cryptocurrency confidence fraud schemes.
Tether helped freeze $225 million
A lot of the seized funds, in accordance with the DOJ, have been within the Tether (USDT).
Tether, the issuer of the U.S. dollar-backed stablecoin, acknowledged its collaboration with authorities because it helped to grab the belongings. An investigation by the U.S. Secret Service and the Federal Bureau of Investigation had deemed the tens of millions of {dollars} in USDT to have been from proceeds of crypto scams.
The DOJ mentioned the funds have been tied to an intensive pig butchering scheme that focused victims all over the world. The pockets addresses holding the seized belongings have been a part of what officers described as “a complicated blockchain-based cash laundering community.”
Blockchain instruments unearth intensive scheme
The perpetrators of the crypto funding fraud used a posh internet of transactions in an try and obfuscate the move of illicit funds.
Nonetheless, authorities leveraged blockchain analytics instruments to hint the transactions and hyperlink them to the fraudulent operation. In response to the DOJ, the scammers defrauded greater than 400 victims globally.
“Below my management, with the help of President Trump and Legal professional Normal Bondi, the U.S. Legal professional’s workplace for the District of Columbia is taking a number one function within the struggle towards crypto-confidence scams, partnering with legislation enforcement all through the nation to grab and forfeit stolen funds and rip them from the arms of international criminals, all with the attention towards making victims entire,” U.S. Legal professional Pirro mentioned in a press release.
A report from the FBI’s Web Crime Grievance Heart beforehand famous that crypto-related funding fraud schemes noticed unsuspecting victims lose over $5.8 billion in 2024.
A more moderen FBI report from April 2025 put complete crypto scam-related losses at over $9 billion for 2024—with pig butchering schemes accounting for greater than half of that determine.
In Might 2025, the U.S. Division of the Treasury’s Workplace of Overseas Belongings Management sanctioned Myanmar warlord and his militia over a variety of crimes, together with cash laundering, human trafficking, and crypto fraud related to pig butchering operations.
