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Time Details
2025-07-02
01:50
DOJ Seizes $225 Million in USDT Linked to 'Pig Butchering' Scam That Caused Kansas Bank Collapse

According to Fox News, the U.S. Department of Justice (DOJ) has initiated a civil forfeiture action to seize over $225 million in Tether (USDT) tied to a sophisticated 'pig butchering' scam. The operation, which involved laundering funds through the crypto exchange OKX, is directly linked to the 2023 collapse of Heartland Tri-State Bank, as its former CEO embezzled $47.1 million and lost a significant portion to the scammers, according to the complaint. The DOJ report states that OKX provided key information to help trace the funds, which were moved through hundreds of intermediary wallets and accounts. For traders, this large-scale seizure highlights increasing regulatory and law enforcement capabilities in the crypto space. The seized USDT will likely be added to a U.S. government crypto stockpile, a factor that could influence long-term market supply and regulatory perspectives on stablecoins.

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