U.S. authorities in North Carolina have executed a major tether seizure targeting funds linked to crypto investment scams built on fake relationships.
North Carolina authorities seize $61 million in USDT
The U.S. Attorney’s Office for the Eastern District of North Carolina has seized more than $61 million in Tether (USDT) tied to alleged money laundering activity. According to the announcement, the operation focused on funds traced to so-called pig butchering crypto investment schemes.
In this enforcement action, the DOJ and Homeland Security Investigations (HSI) led the investigation and coordinated the asset recovery. Moreover, officials described the seizure as one of the largest single confiscations of USDT connected to romance-based crypto fraud in U.S. history.
Investigators tracked the USDT across multiple wallet addresses allegedly used to wash funds collected from victims. However, those wallets were ultimately linked back to broader crypto investment fraud networks that rely on sophisticated social engineering.
How pig butchering scams operate
Pig butchering scams combine online grooming with fraudulent trading platforms. Criminals first build fake romantic or trust-based relationships with targets, often over weeks or months, before steering them to purported investment sites promising high returns.
Once funds are deposited, victims see fabricated account balances showing impressive profits. However, when they try to withdraw, they are told they must first pay supposed taxes, service charges, or other fees. This cycle is designed to keep extracting money until the victim can no longer pay.
The North Carolina DOJ case illustrates how these schemes repeatedly recycle the same fraud tactics against different individuals. Moreover, the use of USDT and other stablecoins allows scammers to move funds quickly across borders and between platforms.
Coordination between Tether and federal agencies
The operation was carried out in close coordination with Tether, which helped facilitate the freezing and transfer of the seized assets. In practical terms, the company assisted in moving more than $61 million worth of USDT into government-controlled wallets.
This collaboration underscores how stablecoin issuers can act as enforcement partners when presented with valid legal process. However, it also highlights the growing expectation that centralized token issuers will respond rapidly to law enforcement requests involving large-scale fraud.
According to officials, the tether seizure required careful tracing of a complex on-chain trail that spanned multiple addresses. Moreover, the case shows how combining blockchain analytics with issuer-level controls can disrupt money laundering tied to online investment scams.
Broader trends in crypto romance fraud enforcement
Authorities noted that pig butchering schemes have generated billions in global losses in recent years, as criminal groups professionalize their social engineering operations. The U.S. DOJ has increasingly prioritized such cases as part of a wider crackdown on transnational fraud.
Stablecoins, including USDT, have become a preferred settlement tool for these networks, due to their speed and liquidity. However, their centralized governance also gives law enforcement a strategic leverage point when tracing and freezing illicit holdings.
The latest action adds to the DOJ’s expanding history of recovering crypto assets for fraud victims. Moreover, it signals that direct coordination with issuers and agencies like HSI will remain central to future stablecoin law enforcement efforts.
In summary, the North Carolina USDT operation shows how coordinated on-chain tracing, issuer cooperation, and federal prosecution can converge to disrupt large-scale crypto romance scams and recover funds for affected investors.
Source: https://en.cryptonomist.ch/2026/02/25/tether-seizure-nc-crackdown/
