In a major win against crypto scam, the U.S. Secret Service has recovered $225 million worth of stolen cryptocurrency, one of the largest such seizures in history. This huge recovery is linked to a fast-growing type of scam called “pig butchering”, a cruel and complex fraud technique that has already caused billions in global losses.

The operation was a team effort involving the U.S. Department of Justice (DOJ), FBI, Secret Service, and two major crypto firms: Coinbase and Tether.

What Are Pig Butchering Scams?

Pig butchering scams are named after the idea of “fattening up” the victim before “slaughtering” them. Scammers spend weeks, even months, building fake emotional or business relationships with victims, usually through social media or dating apps.

Once trust is gained, the victim is convinced to invest in what seems like a legitimate crypto opportunity. However, it’s all a trap. The moment money is transferred into these fake platforms, it disappears, never to be seen again.

In 2024 alone, losses linked to pig butchering scams reached over $5 billion, up 40% from the year before.

Coinbase and Tether Join Forces with Law Enforcement

The historic $225 million seizure was made possible thanks to the joint effort of Tether, the company behind the USDT stablecoin, and Coinbase, a leading crypto exchange.

Tether took the first major step by freezing 39 wallet addresses that were holding the stolen USDT. The company had detected suspicious activity that raised early red flags, possibly tied not only to fraud but also human trafficking operations.

“Tether’s work with the DOJ highlights our commitment to user safety and cooperation with law enforcement,” said Paolo Ardoino, Tether’s CEO.

Following that, Coinbase’s security and investigations team carried out a multi-day operation to trace the stolen assets across the blockchain. They tracked the movement of funds, studied account activity, and identified 130 users who had together lost at least $2.3 million.

This data helped U.S. agencies link the stolen funds to the scammers and build a solid legal case.

Court Order and Asset Recovery

With solid evidence in hand, the DOJ, FBI, and Secret Service obtained a court order to seize the assets. The frozen crypto wallets were then brought under control of the U.S. government.

The Secret Service is now overseeing a restitution process, inviting scam victims to submit records of their transactions for verification. The recovered funds will be redistributed to verified victims via a Secret Service-controlled wallet.

So far, more than 400 victims have been identified, though officials believe the true number is much higher due to underreporting.

Public Awareness and Next Steps

Authorities are urging the public to stay alert and report any suspicious investment opportunities. As scammers become more advanced, education and awareness are key to stopping fraud before it happens.

The crypto community is also stepping up. Both regulators and blockchain companies are working more closely than ever to monitor suspicious behaviour, freeze stolen funds quickly, and protect users.

This case shows that collaboration between tech companies and law enforcement can deliver powerful results, even against large-scale global scams.

The $225 million crypto seizure is not just a recovery, it’s a signal to fraudsters that the crypto space is no longer the lawless land it once was. With stronger partnerships and smarter tracking tools, the crypto world is becoming safer for everyday users.