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Tether Worth $9M Tied to 'Pig Butchering' Scams Is Seized by U.S. DOJ

Tether said Monday it froze $225 million of its USDT stablecoin in light of DOJ investigations.

By Oliver Knight|Edited by Sheldon Reback

Updated Mar 8, 2024, 5:26 p.m. Published Nob 21, 2023, 3:15 p.m. Translated by AI

The U.S. Department of Justice (DOJ) said it seized $9 million worth of the tether [USDT] stablecoin linked to an organization that exploited victims through a "pig butchering" scam.

The seizure comes after agents and analysts from the U.S. Secret Service traced victim deposits that were laundered through several cryptocurrencies, a technique the DOJ described as "chain hopping" in its release Tuesday.

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Tether froze $225 million worth of its stablecoin on Monday following a collaborative investigation between the DOJ, crypto exchange OKX and Tether itself. Pig butchering is a scam that involves luring victims in with traditional romance scams. The victims are often requested to send cryptocurrencies overseas.

"This seizure should also serve as a reminder to cybercriminals that, although the current landscape of the cryptocurrency ecosystem may seem like an ideal way to launder ill-gotten gains, law enforcement will continue to develop the expertise needed to follow the money and seize it back for victims,” the DOJ said.

Tether DOJ Crime Scams US seized crypto

Oliver Knight

Oliver Knight is the co-leader of CoinDesk data tokens and data team. Before joining CoinDesk in 2022 Oliver spent three years as the chief reporter at Coin Rivet. He first started investing in bitcoin in 2013 and spent a period of his career working at a market making firm in the UK. He does not currently have any crypto holdings.