In a victory against digital fraud, federal authorities in North Carolina have confiscated more than $61 million in USDT, the stablecoin issued by digital assets firm Tether. The U.S. Attorney’s Office for the Eastern District of North Carolina announced the seizure on February 24, 2026, marking one of the largest single actions targeting proceeds from so-called “pig butchering” schemes in the region.
Homeland Security Investigations (HSI) agents, operating out of Raleigh with support from the agency’s international operations, led the effort.
Investigators traced the funds through blockchain records after receiving a complaint from a North Carolina resident who fell victim to the scam.
The cryptocurrency was held in wallets directly linked to laundering operations that funneled money from multiple victims across the country.
“Pig butchering” scams earn their name from the gruesome farming practice of fattening an animal before slaughter.
Fraudsters follow a calculated, multi-stage process to exploit victims emotionally and financially.
They begin by building trust, often posing as potential romantic partners or friendly acquaintances through dating apps, social media, or random text messages.
Over weeks or months, they cultivate a relationship and gradually introduce the idea of lucrative cryptocurrency investments, presenting themselves as experienced traders with insider knowledge.
Victims are then guided to sophisticated counterfeit trading platforms that mimic legitimate exchanges.
These fake sites display fabricated profits to encourage larger deposits.
Once funds are committed—typically converted into USDT for its stability and ease of transfer—scammers block withdrawals by demanding additional “taxes,” “fees,” or “verification payments.”
Each new demand extracts more money while the victim chases the illusion of even greater returns.
When victims finally realize the deception, the funds have already been moved.
In this case, HSI analysts followed the money trail using on-chain forensics.
After victims transferred USDT to the fraudulent platforms, the assets were rapidly layered through multiple intermediary wallets to obscure their origin—a common laundering tactic that exploits USDT’s high liquidity, near-instant cross-border transfers, and availability across several blockchains.
Tether played a crucial supportive role by cooperating with law enforcement to facilitate the asset transfer and freeze relevant balances, prompting official thanks from the Department of Justice.
Kyle D. Burns, acting supervisor of the Charlotte HSI field office, praised the operation: agents remain relentless in pursuing criminal proceeds globally to dismantle networks that prey on American citizens.
The seized funds will enter the federal asset forfeiture process, potentially allowing some recovery for victims after legal proceedings conclude.
This action builds on the Eastern District of North Carolina’s recent efforts, including an $8.5 million Tether seizure in December 2025 and a $5 million recovery in 2024.
Nationally, pig butchering scams have exploded in popularity, costing victims billions annually as criminals leverage social engineering and blockchain anonymity.
Organized groups, frequently based overseas, continue to refine their tactics amid growing regulatory scrutiny.
The seizure highlights both the vulnerabilities in the cryptocurrency ecosystem and the increasing effectiveness of law enforcement collaboration with private sector partners like Tether.
Experts note that stablecoins such as USDT have become favored tools for scammers precisely because they combine the speed of digital assets with the perceived safety of dollar-pegging.
Authorities urge the public to remain vigilant.
Red flags include unsolicited investment advice from new online contacts, pressure to move money quickly into unfamiliar platforms, or demands for extra payments to unlock supposed profits.
Victims or those suspecting fraud should report incidents immediately to the FTC, FBI’s Internet Crime Complaint Center, or local HSI offices.
As cryptocurrency adoption grows, operations like this one send a clear message: sophisticated fraud may evolve, but investigators are keeping pace through advanced tracing tools and international partnerships. In the words of one official, in North Carolina and beyond, those who cheat the system ultimately lose.