The Department of Justice on Wednesday asked a court to let the agency seize $225 million from a so-called “pig butchering” operation—a term that describes scams where con men build up the trust of a victim over time, and then trick them into handing over large amounts of money. The funds, which the crooks held in USDT stablecoins, were laundered through the crypto exchange OKX, according to Justice Department. This is the U.S.’s largest ever seizure of funds tied to crypto confidence schemes, said the agency.
“These schemes harm American victims, costing them billions of dollars every year,” Matthew Galeotti, head of the DOJ’s criminal division, said in a statement.
The most common crime linked to cryptocurrencies was extortion, or when bad actors manipulate photos or videos to create explicit content and lure victims into sending crypto. The second most common type was investment fraud, or when criminals promise victims outsized returns if they send them money.
