US federal authorities in North Carolina have seized more than $61 million in USDT connected to an alleged pig butchering crypto fraud scheme, reflecting growing enforcement efforts against digital asset-related scams. Prosecutors said the operation involved scammers posing as romantic partners and investment experts to lure victims onto fraudulent trading platforms that displayed fabricated returns.
Investigators from Homeland Security Investigations traced victim funds across multiple wallets used to launder proceeds before identifying addresses still holding significant balances. The assets were subsequently frozen and made subject to forfeiture, demonstrating the increasing ability of agencies to track blockchain transactions tied to illicit activity.
Cooperation from Stablecoin Issuers
Officials noted that Tether cooperated in the investigation by assisting with the transfer and freezing of assets, underscoring the growing role of stablecoin issuers in compliance and law enforcement actions. As dollar-pegged tokens become more widely used in payments and trading, their traceability is increasingly leveraged in financial crime investigations.
The case highlights how regulated stablecoin infrastructure can enable faster asset recovery compared with traditional cross-border financial channels. Authorities are placing greater emphasis on monitoring wallet flows and exchange-linked transactions as part of broader anti-money laundering strategies within crypto markets.
Rising Institutional Focus on Crypto Fraud
The seizure comes amid a sharp rise in crypto-related fraud, particularly pig butchering schemes that combine social engineering, fake investment dashboards, and AI-driven impersonation tactics. Industry data indicates that scam losses have surged in recent years, with increasingly sophisticated operations targeting retail investors through messaging platforms and fabricated identities.
From a macro and regulatory perspective, enforcement agencies are scaling investigative capabilities as digital asset adoption expands globally. High-profile seizures and prosecutions suggest a tightening compliance environment, where blockchain analytics, issuer cooperation, and cross-agency coordination are becoming central tools in combating crypto-enabled financial crime.