The U.S. Department of Justice (DoJ) has announced the seizure of $61 million worth of Tether linked to fraudulent cryptocurrency schemes referred to as pig butchering. These scams involve elaborate social engineering tactics aimed at defrauding victims through fake investment platforms.
Details of the Seizure
The seized funds were traced to cryptocurrency addresses used for laundering proceeds obtained from victims of these scams. The DoJ emphasized the role of cybercriminals and professional money launderers in utilizing such schemes to conceal their illicit gains. Kyle D. Burns, Acting Special Agent in Charge at HSI Charlotte, stated, “Criminal actors and professional money launderers use cyber-enabled fraud schemes to swindle their victims and conceal their ill-gotten gains.”
Modus Operandi of Scammers
These scams typically target individuals by fostering romantic relationships via dating and social media platforms. The perpetrators often operate from scam compounds in Southeast Asia, where they are coerced into participating in fraudulent activities. Victims are misled into investing in fake platforms that showcase fabricated investment portfolios promising high returns.
Victim Experience and Financial Manipulation
Once victims transfer their funds to wallets controlled by the scammers, the money is quickly routed through various wallets to obscure its origin and ownership. When victims attempt to withdraw their funds, they are often confronted with additional fees, further extracting money from them.
Tether’s Response to Illicit Activity
In a related announcement, Tether disclosed that it has frozen approximately $4.2 billion in assets linked to illicit activities, with nearly $250 million associated with scam networks since June 2025. This highlights the ongoing efforts to combat financial crime within the cryptocurrency space.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
