DOJ Seizes $225 Million In "Pig Butchering" Crypto Scam

The U.S. Department of Justice (DOJ) has requested court approval to seize $225 million tied to a so-called “pig butchering” cryptocurrency scam, Ben Weiss reported for Fortune Tech.

Though the DOJ complaint did not name a specific individual responsible, it linked the funds to a “scam compound” located in the Philippines.

The term refers to scams where fraudsters slowly build trust with victims—often through fake relationships—before manipulating them into handing over large sums of money.

The seized funds, held in USDT (Tether) stablecoins, were laundered through the crypto exchange OKX, according to the DOJ. If approved, it would mark the largest crypto-related seizure of scam proceeds in U.S. history.

Though the DOJ complaint did not name a specific individual responsible, it linked the funds to a “scam compound” located in the Philippines.

These compounds typically house numerous workers who operate in shifts to lure victims into fraudulent investment schemes involving cryptocurrency or fiat money. Losses from crypto-related scams have surged in the U.S. in recent years.

According to the FBI’s latest annual internet crime report, from 2023 to 2024 alone, reported losses jumped 66% to $9.3 billion, while the number of related complaints more than doubled to nearly 150,000.