On February 25, U.S. federal prosecutors announced the seizure of over $61 million in USDT, linked to large-scale cryptocurrency “pig butchering” investment scams. According to a statement from the U.S. Attorney’s Office for the Eastern District of North Carolina, law enforcement tracked blockchain fund flows to identify a series of crypto wallets suspected of money laundering. These wallets held assets stolen from victims of crypto romance scams.
The investigation was led by Homeland Security Investigations. Agents traced the victims’ transfer paths to identify wallets with substantial remaining balances and initiated seizure and forfeiture procedures accordingly. U.S. Attorney Ellis Boyle stated that this operation demonstrates law enforcement’s increased efforts to crack down on the crypto scam money chain, especially targeting cross-border transfers and multi-layer address obfuscation used in money laundering.
Court documents show that scam groups typically establish trust through fake emotional relationships, then recommend high-yield crypto investment schemes to victims and lure them onto fake trading platforms. These platforms display fabricated profit data, and when users attempt to withdraw funds, their money is either frozen or they are asked to pay additional “taxes” or “fees,” further extracting funds.
Once the funds enter scam-controlled wallets, the assets are transferred through multiple addresses to obscure their origin, making law enforcement tracking more difficult. In this case, authorities used on-chain analysis techniques to trace the fund flow and confirmed several key accounts meeting asset forfeiture criteria. This incident also highlights the potential risks of stablecoins in crypto scams, on-chain money laundering, and cross-border fund transfers, while reflecting increased regulatory efforts to track USDT scam funds, freeze crypto assets, and combat illegal crypto investment schemes.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Cambodian lawmakers propose severe prison time for crypto scammers
Cambodia's parliament passed legislation targeting compounds used to defraud victims through scams, including those involving cryptocurrency.
In a Friday notice, the Senate of the Kingdom of Cambodia announced that the chamber had unanimously approved the draft law with no amendment, with 58
Cointelegraph7h ago
Trump fires Pam Bondi, puts pro-crypto Todd Blanche in charge of the DOJ
President Trump has fired Pam Bondi and replaced her with Todd Blanche as interim U.S. Attorney General --- handing control of the Justice Department to the official who dismantled the DOJ's crypto enforcement unit in April 2025 and holds up to $485,000 in personal digital asset holdings.
Cryptonews8h ago
Kalshi hires Carter, a former staffer to former U.S. President Obama, as a policy adviser
The prediction market platform Kalshi in the United States has hired Carter, a former aide to President Obama, as a policy adviser to strengthen ties with the government and address regulatory challenges. Carter’s addition symbolizes Kalshi’s proactive outreach in political circles, while also drawing attention to legal disputes and concerns about insider trading by political figures. Prediction market data is increasingly becoming an important reference for tracking social trends.
ChainNewsAbmedia9h ago
Cambodia passes its first anti–tech scam law, strengthening law enforcement regulations to combat online telecom fraud
Cambodia’s National Assembly passed the “Anti-Technology Fraud Law” at the end of March, aiming to crack down on online scams and human trafficking. The law establishes dedicated offenses, with severe penalties and life imprisonment. The new law expands the scope of law enforcement, targeting acts such as “pig butchering” scams, and responds to international pressure to repair its image. The government has pledged to shut down illegal scam centers by the end of April.
ChainNewsAbmedia10h ago
ZachXBT accuses Circle of $420M in 'compliance failures' since 2022
Onchain detective ZachXBT claims that Circle, the issuer of the USDC (USDC) stablecoin, has failed to freeze or blacklist about $420 million in illicit fund flows since 2022.
Circle can freeze illicit funds and blacklist wallet addresses, but either took “minimal” action to freeze illicit flows or
Cointelegraph11h ago
Kalshi onboards ex-Democratic strategist amid legal troubles
Kalshi announced the hiring of Stephanie Cutter, a former advisor to President Obama, to strengthen its relationships in Washington, D.C. amid scrutiny and lawsuits regarding its prediction markets.
Cointelegraph11h ago
