A tip to Homeland Security unraveled a multi-wallet laundering scheme, which ultimately resulted in a $61 million Tether confiscation.
US federal agents have seized more than $61 million worth of USDT. Investigators traced the seized funds to cryptocurrency addresses allegedly linked to the laundering of criminal proceeds obtained through “pig butchering” schemes.
According to the official press release, the funds were connected to scams in which victims were recruited and manipulated into transferring money under false pretenses.
Romance, Fake Profits, and $61M in USDT
Court filings state that criminal actors targeted victims by establishing trust and often posed as romantic partners. After gaining victims’ confidence, the scammers claimed to have specialized knowledge or techniques that could generate massive profits through cryptocurrency trading.
Victims were directed to fraudulent cryptocurrency trading platforms that closely resembled legitimate platforms in name and appearance. These fake platforms displayed fabricated investment portfolios and showed unusually high returns in order to encourage victims to invest increasing amounts of money.
When victims attempted to withdraw their funds, they were unable to do so and were frequently told they needed to pay additional “taxes” or “fees” to release their assets. According to authorities, these tactics were used to extract more money from victims.
Once funds were transferred to cryptocurrency wallets controlled by the scammers, the money was rapidly moved through multiple wallets to conceal its source, ownership, and control. In this case, Homeland Security Investigations (HSI) agents and analysts in Raleigh received a complaint through the HSI Tip Line and traced the victim’s funds through several cryptocurrency wallets involved in the alleged fraud and money laundering scheme.
Authorities also revealed that some of those wallets still held significant amounts of victims’ funds, making them subject to seizure and forfeiture.
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Crackdowns
Tether has been involved in several financial crime investigations in coordination with international law enforcement agencies. The stablecoin issuer has assisted efforts to track, freeze, and support the seizure of illicit funds. On July 22, 2025, the US Department of Justice announced a civil forfeiture action against Buy Cash Money and Money Transfer Company that involved freezing and reissuing $1.6 million in USDT allegedly tied to Gaza-based terror financing.
In June 2025, Brazilian authorities recognized Tether’s assistance in blocking approximately $6.2 million, connected to a cross-border money-laundering scheme conducted through Klever Wallet. Also in June 2025, the Department of Justice and OKX enabled a civil forfeiture complaint seeking to seize roughly $225 million in USDT allegedly linked to pig butchering investment scams. In March 2025, the United States Secret Service froze $23 million in funds associated with transactions on the Russian-sanctioned exchange Garantex.
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