OKX Linked to $225M Crypto Scam Bust in DOJ’s Largest-Ever Seizure

The U.S. Department of Justice (DOJ) has made history with its largest-ever cryptocurrency scam bust, seizing $225.3 million worth of Tether's USDT tied to a global 'pig butchering' fraud scheme. The operation, which targeted over 400 victims lured by fake investment promises, revealed that the illicit funds were laundered through the OKX exchange before being consolidated into Tether wallets. Blockchain tracing played a crucial role in uncovering the money trail, with Matthew Galeotti of the DOJ's Criminal Division highlighting the significance of this crackdown. This landmark case underscores the growing regulatory scrutiny on crypto exchanges and stablecoins, while demonstrating law enforcement's increasing capability to track and recover digital assets involved in large-scale scams.

DOJ Seizes $225M in Largest Crypto Scam Bust, Tied to 'Pig Butchering' Fraud

The U.S. Department of Justice has seized $225.3 million worth of Tether's USDT in its largest-ever crackdown on a cryptocurrency scam. The operation targets a global 'pig butchering' scheme that defrauded over 400 victims through fake investment promises.

Funds were laundered via OKX exchange before being consolidated into Tether wallets, according to blockchain tracing. Matthew Galeotti of the DOJ's Criminal Division emphasized the growing scale of crypto fraud, citing $9.3 billion in reported losses for 2024 alone.

The civil forfeiture complaint marks a significant escalation in regulatory action against cryptocurrency-related crime. Investigators followed a complex trail of transactions across international borders to recover the assets.

DOJ Links Kansas Bank Collapse to $225M Crypto Pig-Butchering Scam

A Kansas banker's embezzlement of $47 million from Heartland Tri-State Bank—directly causing its 2023 collapse—was funneled to overseas crypto scammers through a sophisticated USDT laundering scheme. The Department of Justice seized $225 million in Tether tied to a Philippines-based operation, marking one of the largest crypto fraud busts to date.

Prosecutors traced the funds through 93 deposit addresses and 100 intermediary wallets before consolidation into 22 primary OKX exchange accounts. The crypto exchange provided critical chain analysis, exposing coordinated IP addresses and reused KYC documents linking the operation to Manila's ITECHNO Specialist Inc.

The pig-butchering scam employed classic tactics: victims were directed to send USDT to controlled addresses, with funds then obfuscated through layered transactions across multiple wallets. This case underscores both the growing sophistication of crypto-enabled financial crimes and law enforcement's improving capacity to track blockchain-based money laundering.