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2025-07-04
12:10
DOJ's $225M USDT Seizure: How a Pig Butchering Scam Toppled a Bank and What It Means for Crypto Traders

According to @FoxNews, the U.S. Department of Justice (DOJ) has initiated a civil forfeiture action to seize over $225 million in Tether (USDT) linked to a sophisticated 'pig butchering' scam. The DOJ complaint reveals that this criminal operation was directly responsible for the 2023 collapse of Heartland Tri-State Bank in Kansas after its CEO embezzled and transferred $47 million to the scammers. Former acting U.S. Attorney Phil Selden described the case as a 'tone-setting' move by the DOJ, signaling a proactive approach to seizing illicit crypto assets to protect victims even before arrests are made. For traders, a key development is that crypto exchange OKX provided crucial information that helped uncover the laundering network, which allegedly handled approximately $3 billion in transaction volume. The seized USDT may eventually be added to a U.S. government crypto stockpile, a factor that could have long-term implications for market supply.

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