On February 27, 2025, the US Attorney’s Office for the Northern District of Ohio filed a civil forfeiture complaint against over USD 8.2 million in USDT tied to a sprawling pig butchering scheme targeting victims across the United States.
The criminal complaint describes how fraudsters, using anonymous phone numbers and messaging apps, manipulated victims into believing they were building personal or financial relationships. In one instance, a Cleveland-area victim was encouraged to liquidate her entire retirement account, ultimately sending more than USD 650,000 in crypto to what she believed was a legitimate investment platform.
Instead, her funds — and those of 30 other identified victims — were routed through a tangled web of DeFi platforms, cross-chain swaps, and unhosted wallets, eventually landing in three TRON addresses.
The FBI used blockchain intelligence to trace the flow of funds across multiple platforms and networks — from centralized exchanges, to Ethereum and TRON, through DeFi protocols, and into final storage wallets. Despite complex laundering methods, the investigation revealed common routing patterns and wallet reuse that helped agents piece together the full laundering scheme.
According to the complaint, the scammer controlled addresses contain commingled funds from numerous victims — both known and not yet identified — tied to pig butchering schemes that span beyond this specific investigation.
What makes this case particularly notable is the dual legal theory used in the complaint. Funds directly traceable to fraud were forfeited under 18 U.S.C. 981(a)(1)(C) (wire fraud) and remaining funds — likely tied to additional unknown victims — were seized under 18 U.S.C. § 981(a)(1)(A) as property involved in money laundering.
This allowed the DOJ to seize the full USD 8.2 million, preventing the fraudsters from recovering any portion of it, and preserving the ability to provide restitution to other victims as the investigation expands.
The FBI and DOJ team recognized that there are other potential victims in the case which have yet to be identified. The team is “tracing backwards” from the seized addresses to identify other potential victims.
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Pig butchering scams are among the most damaging and fastest-growing types of crypto fraud, often linked to human trafficking-backed scam operations in Southeast Asia. They target vulnerable individuals with financial grooming tactics — and can be devastating.
This case underscores how public-private partnerships, sophisticated tracing tools, and smart legal strategies can lead to real-world impact. It’s not just about seizing crypto — it’s about getting justice for victims, many of whom lose their life savings.
TRM Labs is proud to support the FBI’s Cleveland Field Office and the Department of Justice in tracing illicit assets and protecting victims.
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