Feds Move to Seize $200,000 in USDT Linked to Tinder ‘Pig Butchering’ Fraud

U.S. Authorities Pursue Over $200,000 in Crypto Scam Proceeds

Federal prosecutors in Massachusetts have initiated a civil forfeiture case to reclaim more than $200,000 in USDT, a type of stablecoin. Officials allege these funds are linked to the profits of an online cryptocurrency investment scam.

According to court documents, the digital assets were traced to a fraudulent scheme that targeted a Massachusetts resident. The victim was deceived by a Tinder match who promoted a supposed opportunity to invest in crypto trading.

Data from Chainalysis reveals that crypto-related criminal activity surged by 162% in 2025, with illicit addresses receiving at least $154 billion. This spike was largely driven by increased transactions involving sanctioned entities.

Understanding "Pig-Butchering" Scams

A significant portion of these crimes involves so-called "pig-butchering" scams. These schemes blend romance, manipulation, and investment fraud, with scammers gradually gaining victims' trust online. Victims are persuaded to transfer money to what appear to be legitimate trading platforms, only to be pressured for more payments until they realize the profits are fabricated and their funds have vanished.

The Massachusetts case followed this pattern. The victim matched with someone named “Nino Martin” on Tinder, who quickly moved the conversation to WhatsApp—a tactic often used by scammers to shift victims away from monitored platforms. “Martin” claimed to be a financial advisor and offered to assist with cryptocurrency trading.

Following the scammer’s guidance, the victim opened an account and began sending money to a trading website that authorities later identified as fraudulent. When the victim’s legitimate account flagged the transfers as suspicious, individuals associated with the fraudulent platform contacted the victim with instructions to bypass these restrictions.

By the time law enforcement became involved, the victim had sent approximately $504,353 to the suspected scam platform. Investigators were able to trace a portion of these funds to a cryptocurrency account seized in June 2025, with the recovered USDT representing part of the victim’s losses.

Global Reach of Crypto Scams

These pig-butchering operations are increasingly tied to organized crime groups, especially in Southeast Asia. Over the past year, U.S. and international authorities have targeted the networks supporting these scams, including financial intermediaries and money-laundering operations.

• Authorities have sanctioned the money laundering marketplace Huione in Cambodia.
• Prince Holdings Group leader Chen Zhi, allegedly involved in regional scams, was arrested.
• Chinese officials have detained leaders of criminal families operating scam and gambling compounds in Myanmar, sentencing some to death and others to lengthy prison terms.

Challenges in Recovering Stolen Crypto

Despite identifying stolen funds, reclaiming them remains a significant challenge. Alex Katz, CEO and Co-Founder of Kerberus, explained to Decrypt that most victims have little hope of recovering their assets, especially when the funds are rapidly moved between blockchains or converted into popular cryptocurrencies.

Katz noted, “If the assets are switched into stablecoins, there’s a slim chance of freezing them with the cooperation of issuers like Tether or Circle, but this is rarely successful and often nearly impossible.”

He added, “If the stolen funds are sent to a centralized exchange, recovery might be feasible—but only if the exchange is alerted promptly, which usually requires police involvement. In many countries, securing that level of cooperation is extremely difficult.”

Katz emphasized that law enforcement responses vary widely across regions. Many agencies lack established protocols for handling crypto fraud or may refuse to pursue cases involving smaller sums. As a result, both pig-butchering scams and recovery efforts have seen little progress.

“Getting authorities to assist is still very challenging, and in some places, nearly impossible. Often, there aren’t enough reports for agencies to develop proper procedures,” he said.

“Consequently, when these crimes occur, officials may not know how to respond, may question the legitimacy of the case, and frequently do not prioritize such investigations.”