Catenaa, Monday, March 02, 2026- Federal prosecutors in North Carolina have seized over $61 million in USDT tied to a cryptocurrency fraud network known as a “pig butchering” scam, the U.S. Attorney’s Office for the Eastern District of North Carolina announced Wednesday.
Investigators traced stolen funds through a complex chain of crypto wallets used to launder proceeds from victims of the scam, which reportedly involved fake romantic relationships.
Scammers encouraged victims to invest in high-return crypto schemes and directed them to fraudulent trading platforms displaying fabricated profits. Withdrawal attempts were blocked or subjected to additional fake fees.
Homeland Security Investigations (HSI) assisted in tracking the remaining wallet balances, identifying substantial amounts eligible for seizure and forfeiture.
US Attorney Ellis Boyle said the operation demonstrates that criminals cannot profit from such schemes in the Eastern District.
The seized assets are part of broader law enforcement efforts targeting illicit activity in the digital asset space. Last month, the Department of Justice announced the forfeiture of roughly $400 million linked to the Helix darknet crypto mixer, which facilitated laundering for illegal online marketplaces.
Authorities emphasized that the investigation aims to remove ill-gotten gains from fraud operations and deter similar schemes. The case highlights the growing use of regulatory and enforcement tools to combat scams exploiting digital assets and online trust networks.
The action reinforces US efforts to trace and recover cryptocurrency stolen through “pig butchering” scams and other online fraud schemes.
