US seizes $61M in USDT linked to ‘pig butchering’ crypto fraud scheme

CoinTelegraph

by Christina Comben

February 25, 2026

AI-Generated Deep Dive Summary

U.S. federal agents in North Carolina have seized over $61 million worth of USDT (a stablecoin) linked to a large-scale “pig butchering” crypto investment scam. The operation targeted fraudulent trading platforms and fake online relationships used by scammers to manipulate victims. These criminals posed as romantic partners, claiming expertise in cryptocurrency trading, before steering their targets to fake crypto sites with fictitious high-return portfolios. Once lured into investing, the scammers blocked withdrawals and demanded additional fees, leaving victims without access to their funds. This seizure highlights how U.S. authorities are increasingly able to trace and freeze stablecoin flows tied to such scams. The case underscores the growing sophistication of law enforcement in addressing crypto-related fraud, particularly as AI-driven impersonation schemes become more prevalent. By freezing the USDT linked to the scam, officials demonstrated their ability to disrupt these illegal activities and recover significant assets. The “pig butchering” tactic involves building trust with victims through fake relationships, then exploiting that trust for financial gain. The scammers’ use of convincing fake crypto platforms added another layer of deception, luring investors with promises of high returns before cutting them off entirely. This approach not only exploits individuals financially but also undermines confidence in cryptocurrency as a legitimate investment vehicle. For crypto enthusiasts and investors, this case serves as a critical reminder of the importance of due diligence. The surge in AI-driven impersonation schemes underscores the need for heightened caution when engaging with online relationships or unfamiliar trading platforms. Additionally, it highlights the role of law enforcement in combating such fraud, showcasing their ability to trace and seize funds tied to illegal activities. The seizure also raises questions about the regulation of stablecoins and the broader crypto ecosystem. As these assets become more integral to financial systems, regulators and authorities must continue to adapt their strategies to combat emerging forms of fraud. This case marks a significant step in that direction, offering both a warning to potential victims and a testament to the ongoing efforts to secure the crypto space.

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Originally published on CoinTelegraph on 2/25/2026