USDT in the Spotlight: DOJ Seizes $225M in Historic Crypto Scam Bust
In a landmark move, the U.S. Department of Justice (DOJ) has seized $225.3 million worth of Tether's USDT, marking its largest-ever crackdown on a cryptocurrency scam. The operation targeted a global 'pig butchering' fraud scheme that deceived over 400 victims with fake investment promises. According to blockchain tracing, the illicit funds were laundered through the OKX exchange before being consolidated into Tether wallets. Matthew Galeotti of the DOJ's Criminal Division highlighted the significance of this bust, underscoring the growing scrutiny on crypto-related fraud. This development underscores the importance of regulatory vigilance in the crypto space, even as digital assets continue to gain traction in mainstream finance. The seizure also highlights the resilience of stablecoins like USDT, which remain pivotal in the ecosystem despite such challenges.
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.
Treasury Chief Bessent Declares Crypto No Threat to Dollar as GENIUS Act Nears Approval
Treasury Secretary Scott Bessent has positioned cryptocurrency as a reinforcement rather than a rival to U.S. dollar dominance, calling stablecoins a tool for "dollar supremacy." The remarks coincide with the GENIUS Act's advance through Congress, now one step from becoming law after a 68-30 Senate vote.
Digital assets represent "one of the most important phenomena in the world right now," Bessent stated, chastising governments for prolonged neglect of the sector. The administration's stance clashes with European apprehensions, as Italy's Economy Minister Giancarlo Giorgetti warns of stablecoins' potential to destabilize the euro.
President Trump has demanded swift House passage of the bill without amendments, signaling rare bipartisan alignment on crypto regulation. The Treasury's endorsement marks a strategic pivot—embracing blockchain innovation while anchoring it to dollar hegemony.
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.
