Tether & DOJ Make History: $225M Pig Butchering Scam Funds Seized in Landmark Stablecoin Crackdown

Crypto’s least-loved hero strikes again. Tether just handed the DOJ the keys to a $225 million treasure chest—tied to one of the most brazen ‘pig butchering’ scams in crypto history.

Stablecoins playing cops & robbers? Ironic, considering half of finance still thinks they’re only good for money laundering. The blockchain giveth transparency—and now, it taketh away.

Next time someone scoffs at ‘fraud-proof’ crypto, hit ‘em with this: $225 million recovered without a single SWIFT transfer or banker’s apologetic shrug.

Tether’s $2.7B USDT Crackdown

Tether stated that the seizure aligns with its mission to promote compliance, transparency, and safety in the digital asset space. The company noted it has already frozen over $2.7 billion in USDT linked to suspicious activity. These efforts are supported by real-time blockchain monitoring tools and partnerships with more than 255 enforcement agencies across over 55 countries.

As part of these efforts, the stablecoin issuer has taken action in several high-profile cases. In March 2025, it assisted the U.S. Secret Service in freezing $23 million in USDT tied to the sanctioned Russian exchange Garantex. It also partnered with TRM Labs, the TRON blockchain, and Spanish authorities to disrupt over $100 million in illicit funds.

Commenting on these initiatives, CEO Paolo Ardoino emphasized Tether’s commitment to protecting users and maintaining regulatory standards. He added that working with the DOJ highlights the company’s proactive role in preventing the misuse of stablecoins and promoting transparency in the crypto sector.

Tether Supports GENIUS Act Compliance Push

As the most widely used U.S. dollar-pegged stablecoin, Tether has long been at the center of regulatory debates. In response, the company has strengthened its compliance efforts, especially as the U.S. advances the GENIUS Act.

Recently approved by Congress, the legislation requires all dollar-based stablecoin issuers to implement systems capable of freezing funds linked to illegal activity. Tether has expressed its readiness to comply, calling the measure a key step toward ensuring the long-term security and credibility of stablecoins.