Feds Move to Seize $225M in Crypto from Global Pig Butchering Scam

U.S. DOJ Targets $225 Million in Crypto Linked to Global ‘Pig Butchering’ Scam

The U.S. Department of Justice (DOJ) is cracking down on one of the largest cryptocurrency scams in recent memory—filing to seize more than $225 million in digital assets connected to an international “pig butchering” fraud network.

The massive enforcement action, announced on June 18, shows just how widespread and damaging crypto confidence scams have become—and how federal agencies are using blockchain technology to fight back.

What Is a Pig Butchering Scam

A Dangerous Crypto Confidence Game

“Pig butchering” scams are elaborate online cons where fraudsters gain a victim’s trust over weeks or even months—often through dating apps or social media—and then convince them to invest in fake crypto platforms.

The scammers fatten the victim up emotionally and financially (hence the term “pig butchering”), before vanishing with their money. These scams have grown explosively across Asia, the U.S., and Europe since 2022.

DOJ Moves to Forfeit $225 Million in Seized Crypto

Civil Complaint Filed in Washington, D.C.

The U.S. Attorney’s Office for the District of Columbia has filed a civil complaint seeking the forfeiture of approximately $225.3 million in digital assets believed to be stolen through crypto investment frauds.

This action is one of the largest crypto-related forfeiture cases in U.S. history, and it’s tied to a global fraud network that targeted over 400 victims worldwide.

Tether Played a Key Role in Freezing Funds

USDT at the Center of the Seizure

According to the DOJ, most of the seized funds were held in Tether (USDT)—a stablecoin pegged to the U.S. dollar and widely used in the crypto trading world.

Tether, the issuer behind USDT, cooperated with the investigation, helping authorities freeze the wallets linked to the scam. This collaboration was essential in stopping the illicit movement of funds through a sophisticated money laundering network.

Law Enforcement Traced the Funds with Blockchain Tools

Technology vs. Crypto Crime

Despite the scammers’ efforts to hide the money trail using complex blockchain transactions, the U.S. Secret Service and FBI used advanced blockchain analytics tools to track down the stolen funds.

Investigators linked the wallet addresses to a well-organized criminal syndicate using crypto to launder stolen funds globally. These digital breadcrumbs made it possible to trace illicit money flows, even across borders.

400+ Victims Worldwide: The Scope of the Scam

Billions Lost in Crypto Fraud

According to the FBI’s Internet Crime Complaint Center, Americans lost over $5.8 billion to crypto-related investment scams in 2024.
But it didn’t stop there. A newer FBI report from April 2025 revealed that the total climbed to more than $9 billion, with pig butchering scams responsible for over half of these losses.

This shows how widespread and devastating these schemes have become—targeting everyday people, retirees, and professionals alike.

U.S. Attorney’s Office Pledges Strong Action

DOJ’s Pirro: “We Will Rip the Funds from Foreign Criminals”

U.S. Attorney Jeanine Pirro delivered a strong statement:

“Under my leadership, with the support of President Trump and Attorney General Bondi, the U.S. Attorney’s Office is leading the fight against crypto-confidence scams. We’re working with law enforcement across the country to seize and forfeit stolen funds—and return them to victims wherever possible.”

This enforcement effort is part of a broader crackdown on international crypto fraud rings, many of which are connected to criminal operations in Southeast Asia.

Myanmar Warlords, Human Trafficking, and Crypto Fraud

OFAC Sanctions Add Pressure

In a related development, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) in May 2025 sanctioned a Myanmar-based warlord and his militia.

The charges?
A laundry list of crimes—including money laundering, human trafficking, and involvement in pig butchering crypto scams.

This signals that pig butchering is no longer just a financial scam—it’s a transnational crime with deep links to organized criminal groups, militia funding, and even forced labor.

Crypto ATMs and Local Bans in the U.S.

Cities Fight Back

The rising tide of crypto fraud has prompted some U.S. cities to crack down on crypto kiosks and ATMs, which scammers often use to pressure victims into making quick payments.

In Spokane, Washington, authorities recently banned crypto ATMs after a wave of local scam complaints. These steps reflect a growing effort by regulators to protect consumers at the grassroots level.

What This Means for Crypto’s Future

This $225 million case shows both the dangers of unregulated crypto investments and the growing power of blockchain forensics to fight back.

While scammers are becoming more sophisticated, law enforcement is catching up fast, using technology and cooperation with companies like Tether to disrupt fraud networks and recover stolen funds.

If you’re in the crypto space, this is a reminder to:

• Do thorough research before investing

• Never trust investment pitches from strangers online

• Be cautious of platforms that ask for upfront deposits

• Check if the trading app or exchange is regulated or blacklisted

The fight against crypto fraud is heating up—and justice, at least in this case, seems to be catching up.

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