North Carolina Prosecutors Seize $61 Million in USDT from “Pig Butchering” Scam
On February 25, 2026, the U.S. Attorney’s Office for the Eastern District of North Carolina announced that federal agents seized more than $61 million in USDT linked to a large-scale “pig butchering” cryptocurrency investment scam. The funds were traced through a complex network of wallets allegedly used to launder money stolen from victims, according to court filings and a DOJ statement.
The operation involved Homeland Security Investigations (HSI) agents who followed victim transfers, identified accounts still holding significant balances, and executed forfeiture actions on those wallets.
U.S. Attorney Ellis Boyle stated:
“The seizure of a staggering $61 million worth of funds linked to cryptocurrency fraud shows that, in the Eastern District of North Carolina, cheaters never win. Our asset forfeiture team worked along with HSI to take the profit out of crime.”
How the “Pig Butchering” Scam Operated
Scammers built trust through fake romantic relationships (often via dating apps or social media), then convinced victims to invest in fraudulent crypto trading platforms. Victims were shown fabricated gains to encourage larger deposits. When they attempted withdrawals, scammers blocked access or demanded additional “taxes” or “fees.”
Once funds were sent to scammer-controlled wallets, the proceeds were layered through multiple addresses to obscure origin and ownership. HSI traced a victim’s funds through this chain and identified accounts holding forfeitable balances.
This seizure ranks among the largest USDT-related forfeitures in recent years and follows the DOJ’s $400 million forfeiture in January 2026 tied to the Helix darknet mixer.
Broader Implications for Crypto Enforcement
The case highlights continued aggressive use of civil asset forfeiture in cryptocurrency fraud investigations, especially in pig-butchering schemes that have defrauded victims of billions globally since 2020. The Eastern District of North Carolina has become increasingly active in crypto-related prosecutions and forfeitures.
While the seized USDT was held in identifiable wallets, most pig-butchering proceeds are quickly moved through mixers, privacy coins, or cross-chain bridges—making full recovery rare. The fact that $61 million remained traceable underscores both the scale of the scheme and improvements in blockchain tracing capabilities used by federal investigators.
