Last updated on February 26th, 2026 at 05:06 pm
US federal agents in North Carolina have seized more than $61 million in USDt connected to a sprawling “pig butchering” crypto investment scam that targeted victims through fake romantic relationships and sham trading platforms.
The seizure was announced Tuesday by the US Attorney’s Office for the Eastern District of North Carolina in Raleigh. According to prosecutors, scammers posed as romantic partners online, claiming insider-level trading expertise before directing victims to polished but fraudulent crypto investment websites.
💰CHEATERS never win — U.S. Attorney Ellis Boyle announces seizure of $61 million dollars’ worth of funds linked to cryptocurrency fraud
👁🗨Read more at: https://t.co/TSUvSfcVLL pic.twitter.com/xSWa0vJvJX— USAO_EDNC (@USAO_EDNC) February 24, 2026
Fake platforms and blocked withdrawals
These platforms displayed fabricated portfolios showing unusually high returns, encouraging victims to deposit increasing amounts of money. When victims attempted to withdraw funds, they were blocked and pressured to pay additional “fees” to unlock their accounts, funds that never materialized.
Investigators from Homeland Security Investigations traced the stolen assets across multiple crypto wallets used to launder proceeds. Authorities ultimately identified wallet addresses still holding substantial balances, which were then seized and made subject to forfeiture.
Prosecutors said Tether cooperated with law enforcement to help transfer the assets. The case highlights the growing role stablecoin issuers are playing in assisting authorities to freeze and recover funds flowing through US dollar-pegged tokens like USDt.
Crypto fraud losses surge to $17 Billion
The seizure comes amid a sharp rise in crypto-related fraud. According to the Chainalysis 2026 Crypto Scams report, total crypto scam losses reached $17 billion in 2025.
The report found that artificial intelligence-driven impersonation and social engineering scams jumped 1,400% year-over-year, significantly outpacing traditional phishing and giveaway schemes in profitability.
Pig butchering scams, which blend romance manipulation with fake investment opportunities, have become one of the fastest-growing categories.
In February, a key figure linked to a pig butchering-connected laundering operation involving more than $70 million was sentenced to 20 years in federal prison, underscoring how aggressively US courts are now pursuing these networks.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
