Daniel Walker
Authorities in the Asia-Pacific region froze nearly $47 million in USDT connected to large-scale pig butchering scams. The action followed a joint investigation involving Chainalysis, Tether, Binance, and OKX, who worked together with law enforcement to trace and block the stolen assets.
Investigators revealed that scammers received victim deposits between November 2022 and July 2023, funneling them into fraudulent wallets tied to Southeast Asia. In many cases, victims sent money repeatedly โ some for months โ believing they were making legitimate investments.
The funds, totaling about $46.9 million in Tether (USDT), were first consolidated in a single wallet and later spread across five addresses. To keep the illusion alive, scammers even returned small sums to victims โ such as $63,900 in one case โ to make the fake platforms look trustworthy.
How Exchanges and Tether Responded
Once the scam network was mapped out, Chainalysis provided intelligence to major exchanges and regulators. Acting on the findings, Tether froze the fraudulent funds in June 2024, with Binance and OKX confirming wallet connections to the scam network.
This case mirrors a late 2023 U.S. crackdown, when Tether and OKX helped the Department of Justice seize $225 million in USDT tied to human trafficking and romance scams, one of the largest crypto seizures in U.S. history.
What Are Pig Butchering Scams?
Also known as romance or investment scams, pig butchering involves criminals establishing trust with victims โ often through dating apps or random text messages โ before convincing them to โinvestโ in fraudulent schemes. Once significant amounts are deposited, scammers vanish with the funds.
The name comes from the idea of โfattening upโ victims with trust before financially โslaughteringโ them. Originally targeting Asian victims, these scams now operate worldwide, costing investors billions. In 2024 alone, pig butchering scams drained $3.6 billion from the crypto industry, making them one of the sectorโs biggest ongoing threats.
Growing Need for Stronger Security
The broader crypto ecosystem continues to face escalating threats from scams and hacks, with over $3.1 billion lost already in 2025. Experts warn that while recoveries and enforcement actions are increasing, criminals continue to evolve their methods.
To combat these risks, user education, stronger security measures, and cross-industry collaboration remain essential. Coordinated actions like this investigation show that united efforts between exchanges, blockchain analytics firms, and regulators can protect investors and build a safer digital asset market.
