The U.S. Department of Justice has successfully seized over $8.2 million worth of Tether (USDT) cryptocurrency connected to sophisticated “romance baiting” scams. These schemes, previously known as “pig butchering,” involve manipulating victims into investing on fraudulent platforms that display impressive but fictional returns.
## How the Scam Works
Victims are lured into making investments on fake websites or apps that show substantial profits. Encouraged by these apparent gains, victims continue to invest larger sums. However, when they attempt to withdraw significant amounts, they encounter insurmountable obstacles, eventually realizing they’ve been defrauded.
## Legal Action and Asset Recovery
According to TRM Labs, U.S. investigators identified specific laundering patterns linked to these scam operators, enabling them to file a dual legal forfeiture based on:
– Wire fraud (18 U.S.C. 981(a)(1)(C)) for directly traceable funds
– Money laundering (18 U.S.C. § 981(a)(1)(A)) for commingled funds
Tether Limited froze the funds in June 2024, burned the original tokens, and reissued them to law enforcement-controlled wallets in November 2024.
## Victim Impact
The complaint identifies five victims from across the United States who collectively lost over $1.6 million. In total, 38 victimized cryptocurrency accounts with losses exceeding $5.2 million were confirmed. The most severe case involved an Ohio victim who lost approximately $663,352, including their entire Roth IRA and life savings.
## Criminal Organizations
The scam operation is believed to be connected to human trafficking syndicates operating in Cambodia and Myanmar. Their tactics included:
– Allowing small initial withdrawals to build trust
– Demanding “taxation” and “credit score” fees
– Resorting to threats once victims ran out of money
## Protection Advice
To avoid falling victim to romance baiting scams, experts recommend verifying investment platform legitimacy, avoiding “guaranteed returns” opportunities, and never investing more than you can afford to lose.