The U.S. Department of Justice (DOJ) has filed a civil forfeiture complaint to seize over $225 million in cryptocurrency tied to an extensive network of fraudulent “pig butchering” scams.
Announced Wednesday, the DOJ revealed that the funds—mostly in USDT—were confiscated by the U.S. Secret Service as part of an ongoing investigation into online investment fraud. The seized assets were traced across multiple wallets suspected of laundering money for scams that targeted more than 400 victims.
Officials said the schemes involved convincing individuals to transfer large sums into fake crypto platforms with promises of high returns. Victims were often locked out after their deposits, with little or no recourse. The forfeiture complaint targets the digital assets themselves, not yet naming the perpetrators publicly.
Jeanine Pirro, interim U.S. Attorney for the District of Columbia, confirmed that steps are being taken to return the funds to affected individuals. The case ranks among the largest digital asset fraud seizures of 2025 and highlights the DOJ’s increased reliance on blockchain analytics to trace illicit flows.
Tether Assists DOJ in $225M Seizure Related to Crypto Scam
Tether, the world’s largest stablecoin issuer, played a central role in the investigation by helping U.S. law enforcement trace and freeze the stolen funds. The company confirmed Wednesday that it worked closely with federal authorities throughout the operation.
The case involved a vast network of scams commonly referred to as “pig butchering,” where fraudsters build trust with victims over weeks or months before prompting large transfers into bogus investment platforms. Once the deposits are made, the fraudsters disappear with the funds.
Tether’s cooperation helped authorities identify suspicious wallet activity and freeze the assets in time. The move marks one of the largest law enforcement collaborations involving a stablecoin issuer and underscores the increasing intersection of blockchain technology with law enforcement and compliance.
According to the FBI’s Internet Crime Complaint Center, crypto investment scams surged to record levels in 2024, with Americans losing $5.8 billion to fraudulent schemes—bringing total digital asset-related losses to $9.3 billion for the year.
DOJ Intensifies Crypto Fraud Crackdown Amid New Regulations
The DOJ’s $225 million crypto seizure follows other enforcement activity across the U.S. This week, authorities in New York confiscated $140,000 and froze another $300,000 connected to a separate scam involving fake crypto ads on social media. That scheme reportedly impacted over 300 people and generated more than $1 million in losses.
In a press briefing, Jeanine Pirro emphasized that the DOJ’s top priority is protecting retail investors from growing fraud risks in digital finance. When asked whether regulatory leniency under the Trump administration could increase risk, Pirro declined to speculate, reaffirming the DOJ’s focus on enforcement.
The crackdown coincides with regulatory momentum in Washington following the Senate’s passage of the GENIUS Act—a comprehensive bill focused on stablecoin oversight. While the DOJ has yet to align its enforcement roadmap directly with the new legislation, experts say the confluence of enforcement and regulation points to a maturing digital asset policy environment.
Quick Facts
- DOJ seizes over $225M in USDT from pig-butchering scams targeting 400+ victims.
- Tether collaborated with U.S. authorities to trace and freeze stolen funds.
- Crypto-related fraud losses in the U.S. topped $9.3B in 2024.
- Crackdown aligns with rising regulation after the GENIUS Act’s Senate passage.
