On February 25, U.S. federal prosecutors announced the seizure of over $61 million in USDT, linked to large-scale cryptocurrency “pig butchering” investment scams. According to a statement from the U.S. Attorney’s Office for the Eastern District of North Carolina, law enforcement tracked blockchain fund flows to identify a series of crypto wallets suspected of money laundering. These wallets held assets stolen from victims of crypto romance scams.
The investigation was led by Homeland Security Investigations. Agents traced the victims’ transfer paths to identify wallets with substantial remaining balances and initiated seizure and forfeiture procedures accordingly. U.S. Attorney Ellis Boyle stated that this operation demonstrates law enforcement’s increased efforts to crack down on the crypto scam money chain, especially targeting cross-border transfers and multi-layer address obfuscation used in money laundering.
Court documents show that scam groups typically establish trust through fake emotional relationships, then recommend high-yield crypto investment schemes to victims and lure them onto fake trading platforms. These platforms display fabricated profit data, and when users attempt to withdraw funds, their money is either frozen or they are asked to pay additional “taxes” or “fees,” further extracting funds.
Once the funds enter scam-controlled wallets, the assets are transferred through multiple addresses to obscure their origin, making law enforcement tracking more difficult. In this case, authorities used on-chain analysis techniques to trace the fund flow and confirmed several key accounts meeting asset forfeiture criteria. This incident also highlights the potential risks of stablecoins in crypto scams, on-chain money laundering, and cross-border fund transfers, while reflecting increased regulatory efforts to track USDT scam funds, freeze crypto assets, and combat illegal crypto investment schemes.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
South Korean police arrest two suspects involved in the theft of 22 Bitcoin evidence
The police in Gyeonggi Province, South Korea, have arrested two suspects for allegedly stealing 22 Bitcoins. These Bitcoins were seized during an investigation into a 2021 hacking case and were illegally transferred due to improper storage by the police. They have not yet been recovered, with an estimated loss of approximately $1.5 million.
GateNewsBot23m ago
Caixin: Chinese victims of the 60,000 Bitcoin money laundering case need to provide additional financial details by June 18.
The case of 60,000 Bitcoin money laundering will hold a hearing in July, and applicants are required to provide financial details before 2026. The hearing will determine whether Chinese law or UK law applies, affecting victims' rights to compensation.
GateNewsBot1h ago
India's crypto regulatory gap sparks a rights protection dilemma: courts reject investors' claims, and fund freeze disputes escalate
February 25 News, the Delhi High Court recently dismissed a lawsuit filed by a group of cryptocurrency investors against a certain crypto platform. Judge Prushaindra Kumar Kaurav pointed out that the platform is a private company and does not meet the definition of a "state" entity under Article 12 of the Constitution, therefore it cannot be subject to judicial intervention under Article 226. The petition lacks a legally admissible basis.
The lawsuit was initiated by investors such as Rana Handa and Aditya Malhotra, requesting the court to strengthen regulation of the crypto platform, and to direct the CBI or a special investigation team to intervene, as well as to unfreeze the user funds that are reportedly restricted. However, the court explicitly stated that ordering a criminal investigation is an extremely exceptional circumstance, and some complaints have not even completed the FIR process, which is insufficient to trigger a mandatory investigation mechanism.
GateNewsBot4h ago
Bitcoin Depot Requires ID for Every Crypto ATM Transaction
Bitcoin Depot has implemented a new policy mandating identification for every transaction at its ATMs to enhance compliance and reduce fraud. This change extends previous ID checks and responds to increased regulatory scrutiny and fraud concerns, notably following lawsuits from various states.
TheNewsCrypto5h ago
Jane Street faces insider trading allegations, raising suspicions behind the crypto crash
Jane Street faces allegations from Terraform Labs, claiming it profited by using non-public information to close positions early before the 2022 UST collapse. Jane Street denies the allegations, asserting that the trades were part of normal market-making activities. This case could impact the legal definition of insider trading within the cryptocurrency market. As a major crypto market maker, Jane Street's trading activities are often scrutinized during significant market events, but it has not yet been found legally liable by regulatory authorities.
MarketWhisper5h ago
