According to @KookCapitalLLC, the Web3 space is being strangled by 'Ponzi VCs' who prioritize rapid token exits over sustainable revenue, contributing to a decline in global venture financing, which fell to $23 billion in April. This model, characterized by short vesting periods and hype cycles, attracts regulatory action, such as a recent $198 million SEC fraud case, and deters talent. Simultaneously, the real-world impact of crypto-related crime is highlighted by a major Department of Justice (DOJ) action to seize over $225 million in laundered Tether (USDT) from a 'pig butchering' scam. This specific scam led to the collapse of Heartland Tri-State Bank after its CEO embezzled $47 million. The DOJ complaint notes that the crypto exchange OKX was key in tracing the funds. The seized USDT may eventually be added to a U.S. government crypto stockpile, a move that could have long-term implications for the stablecoin's market dynamics.

According to @timnitGebru, the cryptocurrency sector faces significant security and regulatory pressures. A North Korean hacking group, Famous Chollima, is actively targeting crypto professionals with malware hidden in fake job applications impersonating firms like Coinbase and Uniswap, as reported by Cisco Talos. This Python-based malware, PylangGhost, is designed to steal credentials and wallet data from over 80 extensions, including MetaMask and Phantom, creating a direct threat to user assets. Concurrently, the U.S. Department of Justice has seized $225 million in crypto linked to 'pig butchering' scams. Former U.S. Attorney Phil Selden described this as a 'tone-setting case' demonstrating the DOJ's commitment to protecting victims and recovering funds, even before arrests are made. These developments unfold as major assets like Ethereum (ETH), priced around $2,549, and Chainlink (LINK), at $13.32, experience downward price pressure, highlighting market sensitivity to security breaches and enforcement actions.

According to @zachxbt, the U.S. Department of Justice has filed a civil forfeiture action to seize over $225 million in USDT connected to a large-scale 'pig butchering' scam. The operation is linked to the 2023 collapse of Heartland Tri-State Bank, as its former CEO, Shan Hanes, embezzled $47.1 million and sent a portion to the scammers, as stated in the complaint. The DOJ's filing highlights that the crypto exchange OKX provided crucial information that helped uncover a sophisticated money laundering network involving numerous wallets and over 122 OKX accounts tied to a Manila-based scam compound. The report also notes a separate action where Spanish police, aided by Europol, arrested five individuals in a suspected crypto fraud operation that laundered approximately $540 million.

According to @FoxNews, the U.S. Department of Justice (DOJ) has seized over $225 million in the stablecoin Tether (USDT) connected to a massive 'pig butchering' scam. This scam is notably linked to the collapse of Heartland Tri-State Bank, whose former CEO embezzled $47 million and lost it to the fraudsters, as stated in a DOJ complaint. The investigation, which identified a money laundering network that processed approximately $3 billion, was aided by key information from the crypto exchange OKX. The DOJ complaint details how scammers used a complex network of over 100 intermediary wallets and 122 OKX accounts to obscure the flow of funds. In a separate operation, Spanish police, with support from Europol, arrested five individuals in connection with a $540 million crypto fraud scheme that impacted over 5,000 victims, using a network of bank accounts and crypto exchanges based out of Hong Kong to launder the illicit funds. The seized USDT from the DOJ case is expected to be added to a U.S. government strategic crypto stockpile.

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.

According to @FoxNews, the U.S. Department of Justice (DOJ) has executed a significant enforcement action, seizing over $225 million in laundered Tether (USDT) linked to a 'pig butchering' scam that caused the collapse of a Kansas bank. The DOJ complaint revealed a complex laundering network that processed approximately $3 billion through the crypto exchange OKX, which provided key information for the investigation. For traders, a critical takeaway is that the seized USDT will likely be added to a U.S. government crypto stockpile, potentially impacting market supply and dynamics over the long term. This development occurs as NBA legend Shaquille O’Neal agrees to a $1.8 million settlement in a class-action lawsuit over his promotion of the collapsed FTX exchange, highlighting the ongoing legal and reputational risks in the crypto space.

According to the U.S. Department of Justice (DOJ), the collapse of Heartland Tri-State Bank in Kansas was directly tied to a large-scale 'pig butchering' crypto scam involving over $225 million in laundered USDT. The DOJ's civil forfeiture action targets laundered USDT linked to a Philippines-based scam network that exploited the former bank CEO, Shan Hanes. Crypto exchange OKX provided critical intelligence, helping trace the movement of funds through at least 93 scam addresses and 100 intermediary wallets before consolidation into OKX accounts. The DOJ identified $3.3 million of the $47 million Hanes embezzled, highlighting ongoing risks associated with USDT in criminal activity and the importance of compliance and transparency for exchanges. Traders should note that increased scrutiny on USDT-related transactions and future government actions to stockpile seized digital assets could impact USDT market liquidity and trading sentiment, especially as USDT remains a top stablecoin in crypto trading pairs. (Sources: DOJ complaint, CNBC, OKX disclosures)

According to @paoloardoino, Tether (USDT) has been officially recognized by the U.S. Department of Justice (DOJ) for its assistance in the seizure of $225 million connected to a major pig butchering fraud scheme (source: tether.io/news/tether-ac…). This move demonstrates Tether’s commitment to compliance and risk management, signaling increased regulatory scrutiny for stablecoins. For crypto traders, this development may strengthen market confidence in USDT and other stablecoins, as transparent enforcement actions could reduce illicit activity and support broader crypto adoption (source: DOJ announcement, June 18, 2025).