Federal agents seized about $8.5 million in Tether tied to a large-scale "pig butchering" cryptocurrency investment scam targeting U.S. victims. The action, announced by the U.S. Attorney’s Office for the Eastern District of North Carolina, traces transfers through multiple wallets to recover funds for victims and disrupt organized crypto fraud.

On December 18, 2025 the U.S. Attorney’s Office for the Eastern District of North Carolina announced that Department of Justice agents seized roughly $8.5 million in Tether (USDT) connected to a cross-border "pig butchering" investment fraud. Investigators traced transfers through multiple cryptocurrency wallets and seized funds that prosecutors say flowed through a network of fraud-controlled addresses. The schemes used fabricated investment platforms and fake portfolios to build trust, then froze accounts or demanded purported "taxes" or fees to prevent withdrawals. The seizure is part of a coordinated, multi-agency effort to dismantle organized crypto fraud operations, recover assets, and provide restitution to victims. Prosecutors and law enforcement partners emphasized forensic blockchain analysis, cooperation with virtual asset service providers, and tracing complex layering techniques to identify beneficiary wallets. The office said the investigation remains ongoing as authorities work to repatriate funds and identify additional conspirators and infrastructure used to facilitate the scam.