In a record-setting operation, the U.S. Department of Justice (DOJ) has seized over $225 million in cryptocurrency tied to global “pig butchering” scams, targeting fraudulent investment platforms that have defrauded hundreds worldwide. The seizure marks the largest of its kind in the history of the U.S. Secret Service, with cooperation from Tether, the world’s leading stablecoin issuer.
In a historic enforcement action, the United States Department of Justice (DOJ) has announced the seizure of over $225 million in cryptocurrency tied to “pig butchering” scams—a type of online investment fraud that has bilked victims across the globe. This seizure marks the largest cryptocurrency confiscation in the history of the U.S. Secret Service, demonstrating a major breakthrough in combating digital financial crimes.
“Pig butchering” scams involve criminals forming deceptive emotional or romantic relationships with victims and manipulating them into investing in fake crypto schemes. Once invested, the money is siphoned away and laundered through intricate blockchain transactions, leaving victims emotionally and financially devastated.
The DOJ, working alongside the Federal Bureau of Investigation (FBI) and the U.S. Secret Service, filed a civil forfeiture action to recover funds laundered through hundreds of thousands of crypto transactions. The operation identified more than 400 victims globally, with dozens residing in the U.S.
“This seizure of $225.3 million in funds linked to cryptocurrency investment scams marks the largest cryptocurrency seizure in U.S. Secret Service history,” said Shawn Bradstreet, Special Agent in Charge of the Secret Service’s San Francisco Field Office.
The agency credited Tether, the world’s largest stablecoin issuer, for assisting in freezing suspicious assets, enhancing the transparency of the operation. Blockchain analytics tools were critical in tracing the crypto back to fraud networks, despite their attempts to obscure the fund flows using sophisticated laundering techniques.
According to the FBI, cryptocurrency-related fraud accounted for more than $5.8 billion in reported global losses in the past year alone. The seized assets are now subject to civil forfeiture proceedings, with the intention of returning them to the affected victims.
Officials emphasized that the operation reflects growing cooperation between law enforcement and private crypto firms to clamp down on global cybercrime rings.