US agents seize $61M USDT tied to crypto romance scam, highlighting enforcement efforts, asset forfeiture actions, and blockchain tracking success.
US federal agents seized more than $61M worth of Tether (USDT) linked to a crypto romance scam. Authorities spoke of one of the largest recoveries of USDT related to fraud. As a result, the enforcement reflects increasing efforts to fight the digital asset crimes.
Federal Authorities Trace and Freeze Fraud-Linked Crypto
According to the US Attorney’s Office for the Eastern District of North Carolina, scammers had a large “pig butchering” scheme. Specifically, criminals disguised themselves as romantic partners and falsely portrayed fake crypto trading expertise. Therefore, victims sent money to fraudulent investment platforms.
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Investigators from Homeland Security Investigations were able to trace victim’s funds using blockchain transactions and wallet networks. Additionally, officials went after accounts with large balances, upon which seizure and forfeiture could occur. As a result, agents successfully froze and recovered illicit digital assets in doing so.
U.S. Attorney Ellis Boyle highlighted the effects of the enforcement action. He said criminals will not keep their profits from cryptocurrency fraud schemes. Consequently, asset forfeiture was emphasized by the authorities as a potent strategy against fraud.
Officials confirmed that the seizure was greater than $61M in USDT connected directly to scam-related wallets. Meanwhile, Homeland Security Investigations, Department of Justice and federal prosecutors were all agencies involved. Thus, interagency coordination allowed the tracing and enforcement to be carried out quickly.
Importantly, Tether assisted authorities in identifying and freezing suspicious addresses in the course of the investigation. Furthermore, cooperation supported secure recovery funds transfer under legal processes. Therefore, stablecoin issuers are still playing roles in financial crime prevention.
Pig Butchering Scam Used Emotional and Technical Deception
Authorities explained that pig butchering scams are a combination of both emotional manipulation and fake investment tactics. First, scammers build trust due to online conversations and make up relationships. Subsequently, victims are invited to participate in the trading activities at convincing but fraudulent crypto trading platforms.
These fake platforms show fake portfolios with abnormally high and fake investment returns. Moreover, fabricated gains induce victims to deposit more money many times. However, later efforts at withdrawal bring demands for bogus taxes or processing fees.
Eventually, scammers block account access and disappear with the assets of the victims. Meanwhile, criminals transfer stolen money between a number of crypto wallets to disguise sources.
Law enforcement agencies have started targeting wallet networks of organized crypto fraud operations around the globe. As a result, asset forfeiture actions interrupt the cash flow of criminal organizations and destroy money laundering routes. Therefore, the authorities are continuing to expand the capabilities of blockchain investigation.
This seizure comes after other significant enforcement actions against digital asset crimes earlier in 2026. For example, federal authorities seized $400M that was connected to darknet-related laundering services.
Ultimately, regulators and investigators emphasize vigilance because online romance and investment scams continue to increase. Moreover, authorities urge users to verify platforms before transferring digital assets. For the moment, agencies reaffirm commitments to track down and recover stolen cryptocurrency funds.
