$47M seized in global crackdown on pig butchering crypto scams

Authorities have frozen $47 million in Tether (USDT) linked to pig butchering scams, exposing one of the largest coordinated fraud crackdowns in Southeast Asia’s crypto market.

The joint operation—led by Tether, Chainalysis, Binance, and OKX—tracked victim funds across dozens of wallets, revealing how scammers lured targets into long-term fake investment schemes before siphoning their savings into crypto.

“This case underscores both the sophistication of pig butchering scams and the growing ability of industry and regulators to respond,” — Kim Grauer, Director of Research, Chainalysis.

How the scam operated

Victims were persuaded to invest in what appeared to be legitimate opportunities but were instead directed to fraudulent addresses. Investigators found that the stolen $46.9 million in USDT was initially consolidated into a single wallet before being dispersed into five others.

To reinforce trust, scammers occasionally returned small sums to victims in one instance, about $63,900 creating the illusion of returns before cutting off communication.

Once the scam network was mapped, Chainalysis shared its intelligence with exchanges and law enforcement. Tether then froze the wallets, with Binance and OKX providing confirmations linking the activity to pig butchering scams.

“This action shows the importance of swift collaboration between exchanges, blockchain analytics providers, and issuers like Tether,” — Paolo Ardoino, CEO of Tether.

A growing global threat

The crackdown comes less than a year after Tether and OKX assisted the U.S. Department of Justice in freezing $225 million in USDT tied to human trafficking and romance fraud. That seizure, one of the largest in U.S. history, highlighted how pig butchering scams and similar schemes are increasingly global in scope.

Pig butchering scams, also known as romance or investment frauds, typically involve criminals cultivating trust with victims via dating apps or unsolicited messages. Once convinced, victims are directed into fake crypto platforms where funds are siphoned off.

The scams, which originated in Asia, have now spread worldwide. Losses attributed to pig butchering scams reached $3.6 billion in 2024 alone, according to industry estimates.

“These scams are among the most damaging threats to retail investors in crypto,” — Michael Duane, Senior Advisor, Financial Crimes Enforcement Network (FinCEN).

Need for stronger defenses

The latest freeze highlights both the effectiveness and the limitations of coordinated crackdowns in the crypto sector. Securing nearly $47 million is a major achievement, but it represents only a fraction of the wider problem. According to industry data, more than $3.1 billion has already been lost to scams and hacks in 2025, showing that malicious actors are continually adapting their methods to bypass safeguards.

Experts argue that tackling pig butchering scams requires a multi-layered approach that goes far beyond freezing stolen assets after the fact. While enforcement actions provide relief in some cases, prevention remains the most effective strategy. That means raising awareness among retail investors, implementing stricter onboarding requirements on exchanges, and encouraging data sharing between platforms and regulators.

One challenge is that victims of pig butchering scams are often lured in through trusted communication channels, such as dating apps, WhatsApp, or even professional networking sites.

This makes traditional fraud detection tools less effective. To counter this, analysts suggest stronger collaboration between tech platforms, crypto exchanges, and law enforcement. Proactive warnings such as pop-up alerts when users attempt large transfers to risky addresses are one measure under discussion.

Another key step is increasing transparency in the crypto ecosystem. Exchanges could strengthen “Know Your Customer” (KYC) processes, enforce stricter monitoring of wallet activity, and publish regular reports on scam-related wallet blacklists. By making fraudulent networks easier to detect and harder to operate, the industry can reduce the success rate of these scams.

“Recoveries are vital, but prevention must be the focus. Without stronger defenses, pig butchering scams will continue to evolve faster than regulators can act,” — Kim Grauer, Director of Research, Chainalysis.

For crypto investors, the lesson is clear: vigilance remains the strongest line of defense. Conducting independent research, avoiding unsolicited investment offers, and confirming the legitimacy of platforms before transferring funds are all critical practices.

Ultimately, while enforcement successes like this freeze bring hope, long-term security will depend on whether the crypto industry can build systemic safeguards that make pig butchering scams far less effective. Collaboration between law enforcement, exchanges, and technology providers will determine whether future investors can be spared from the devastating financial and emotional toll these schemes continue to inflict.