Federal authorities have seized more than $61 million in Tether, a cryptocurrency linked to the U.S. dollar, as part of an investigation into online investment scams. The United States Attorney’s Office for the Eastern District of North Carolina announced that the funds were traced to cryptocurrency addresses allegedly connected to money laundering activities involving proceeds stolen from victims through so-called “pig butchering schemes.”
According to court documents, scammers targeted individuals by building trust under the guise of romantic relationships. After gaining trust, they claimed expertise in cryptocurrency trading and directed victims to fraudulent trading platforms designed to mimic legitimate ones. These fake platforms displayed fabricated investment portfolios with high returns, encouraging victims to invest increasing amounts of money. When victims tried to withdraw their funds, they were unable to do so and were often told they needed to pay additional taxes or fees.
Once the scammers received the victims’ money in their cryptocurrency wallets, they quickly moved it through several other wallets in an attempt to hide its origin and ownership. Homeland Security Investigations (HSI) agents in Raleigh became involved after receiving a report of suspected investment fraud via the HSI Tip Line. Through their investigation, agents tracked the movement of funds across multiple wallets used in both fraud and money laundering operations. Some of these wallets still held significant sums belonging to victims and were subject to seizure.
“Criminal actors and professional money launderers use cyber-enabled fraud schemes to swindle their victims and conceal their ill-gotten gains,” said HSI Charlotte Acting Special Agent in Charge Kyle D. Burns. “HSI special agents work diligently to trace the illicit proceeds of crime across the globe to disrupt and dismantle the transnational criminal organizations that seek to defraud hardworking Americans.”
