Federal agents seized nearly $8.5 million in USDT tied to victims of a large “pig butchering” cryptocurrency investment fraud. DOJ and FBI traced transfers across multiple wallets, recovered funds subject to seizure, and warned victims against paying purported recovery or tax fees.

Federal prosecutors in the Eastern District of North Carolina announced the seizure of approximately $8.5 million in Tether (USDT) connected to victims of a cross-border “pig butchering” cryptocurrency investment scam. Investigators from the DOJ and FBI used blockchain tracing to follow transfers through a chain of wallets and identified funds that were subject to criminal forfeiture. The operation recovered assets held at intermediary addresses and coordinated legal steps to secure the cryptocurrency while crimes remain under investigation. Prosecutors emphasized that the seizure forms part of a broader strategy targeting organized fraud networks that create fake trading platforms and recruit victims via romantic or relationship-based approaches. Authorities also issued public warnings directing victims not to pay purported recovery or “tax” fees to third parties that contact them after a theft. The announcement highlights growing DOJ capacity to combine traditional investigative tools with blockchain analytics to disrupt and recover proceeds of large-scale crypto-enabled investment fraud.