The U.S. Department of Justice (DOJ) has seized over $8.2 million in USDT (Tether) cryptocurrency stolen through romance scams, a type of fraud where victims are tricked into making fake investments.
Also known as “pig butchering,” this scam lures victims into believing they are making profitable investments on fraudulent websites or apps. Initially, small withdrawals are allowed to build trust, but once victims invest larger amounts, they face obstacles when withdrawing their funds. In the end, they realize the platform was fake, and their money is gone.
Investigators, mainly from the FBI, identified money laundering patterns linked to these scams, leading to legal action for wire fraud and money laundering. This enabled authorities to seize the assets, with Tether Limited freezing the funds in June 2024 and transferring them to law enforcement-controlled wallets in November 2024. The move could help victims recover some of their lost money.
The complaint lists five victims from various U.S. states who lost a combined $1.6 million. In total, at least 38 cryptocurrency accounts suffered losses exceeding $5.2 million. Authorities believe the scammers are linked to human trafficking syndicates in Cambodia and Myanmar. These fraudsters used tactics like fake fees for “taxation” or “credit scores” to extract more money and even resorted to threats when victims could no longer pay.
One of the worst cases involved a victim from Ohio who lost $663,352 after being pressured into paying release and handling fees. When she could no longer afford another $300,000, scammers threatened her loved ones.
