DoJ Seizes $61M in Tether Linked to Pig Butchering Crypto Scams
TL;DR
The U.S. Department of Justice seized $61 million in Tether linked to pig butchering crypto scams, where fake platforms lure victims with high returns and block withdrawals. Tether has frozen billions in illicit assets, including $250 million from scams since June 2025.
Source: The Hacker News
The U.S. Department of Justice this week announced the seizure of $61 million worth of Tether that were allegedly associated with bogus cryptocurrency schemes known as pig butchering. The confiscated funds were traced to cryptocurrency addresses used for the laundering of criminally derived proceeds stolen from victims of investment scams. According to the DoJ, the fake platforms displayed made-up investment portfolios displaying unusually high returns in a deliberate attempt to make victims invest more of their funds. The reality hits when users try to withdraw their funds, at which point they are asked to pay an extra fee as a way to extract even more money from them. In a coordinated announcement, Tether said it has frozen around $4.2 billion in assets linked to illicit activity to date, including nearly $250 million related to scam networks since Jun. 2025 alone. Full Story