Chainalysis said Wednesday that APAC authorities, with support from crypto firms, investigated a “pig butchering” case that led to Tether freezing $49.6 million in USDT.
Investigators used Chainalysis’ “Crypto Investigations Solution” to trace funds from a Southeast Asia–based pig butchering scam to just five wallets. The analysis showed dozens of victim transfers between November 2022 and July 2023, funneled through intermediary wallets before consolidation, with scammers even sending small amounts back to victims to maintain the illusion of legitimacy.
Victims’ transfers. Image: Chainalysis.
Crypto exchanges Binance and OKX worked with Chainalysis to develop the intelligence, and the findings were then shared with APAC law enforcement.
“Our collaboration with these organizations highlights the essential role of public-private partnerships in subverting criminal operations and working toward compensating victims,” Binance Global Head of Intelligence and Investigations Erin Fracolli said.
“When looking at these scams, people often don’t understand how victims fall prey to them, and often blame the victims,” a senior blockchain investigator for the special investigations team at OKX added. “It’s not based on someone’s intelligence, but rather on their vulnerabilities, and scammers are adept at figuring those out.”
Tether subsequently froze the funds in June 2024 at the agency’s direction, preventing the perpetrators from converting their illicit proceeds into fiat.
“Unlike other cryptocurrencies like ether and bitcoin, Tether has the technical ability to freeze known illicit funds,” Tether CEO Paolo Ardoino explained. “We are dedicated to working with law enforcement agencies worldwide to freeze funds associated with pig butchering scams and all manner of illicit activity, with the ultimate goal of providing restitution for victims.”
Pig butchering is a scam where fraudsters “fatten up” victims by building up trust through casual or romantic contact, then luring them into fake investments before disappearing with the funds.
“Tragically, those who unwittingly invest in these scams aren’t the only victims,” Chainalysis said. “To operate these criminal enterprises, traffickers lure other victims under false pretenses, hold them captive in walled compounds, and use their forced labor to conduct the scams.”
‘Pig butchering’ cases increasingly involving crypto
Pig butchering scams aren’t new — investment and romance fraud long predate crypto. While blockchain can enable stronger countermeasures, total crypto-related investment scams have resulted in losses valued at over $5.8 billion in 2024, according to the FBI Internet Crime Complaint Center, with pig butchering cases on the rise.
In November 2023, the DOJ, with assistance from Tether and OKX, froze a record $225.3 million in USDT held in self-custodial wallets connected to an international human trafficking syndicate in Southeast Asia responsible for romance scams. Investigators identified dozens of victims based in the United States, in addition to more than 400 victims globally.
Coinbase later disclosed its role in that investigation in June this year, following shortly after the U.S. Secret Service, Federal Bureau of Investigation, and the U.S. Attorney’s Office filed an order to officially seize and burn the frozen funds — the largest crypto seizure in U.S. Secret Service history — which a judge subsequently authorized.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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