US Seizes $112 Million in Cryptocurrency in Pig Butchering Case

The FBI and the U.S. Department of Justice seized $112 million in cryptocurrency in a pig butchering fraud case that has been hitting crypto investors for several years. This is one of the largest operations of its kind, and investigators say some of the assets may still be recoverable for victims.

The case involved the DOJ, the FBI, prosecutors from several federal districts, and specialized DOJ units. According to the department, courts in Arizona, Central California, and Idaho authorized the seizure of 6 crypto accounts. Case materials describe investment fraud schemes, money laundering, and the movement of assets through a major crypto service.

Why does pig butchering hit investors so hard?

Because it is not a quick hack, but a long trap. A person is first “groomed” through messages, social media, or dating apps, and then over weeks or months is led to transfer money to a fake platform. Profit is shown on the screen. In the wallet, of course, there is nothing.

In this story, the important point is not only the $112 million figure. According to the DOJ, investigators tracked the movement of stolen funds through mixed transaction networks and found points where the assets were cashed out. That means one simple thing: even if the money has been “mixed” several times, the chain can still be unraveled. That is why authorities so often go after accounts, not just individual scammers. Our recent story about Balance Coin’s collapse after the protocol hack fits well here too, because it also shows how quickly a loss of control over assets turns into major losses.

Market reaction

The announcement itself does not include data on BTC or ETH movement after the seizure, but it does contain hard numbers that show the scale of the problem. In the DOJ statement, it is noted that in 2024 alone, the FBI’s Internet Crime Complaint Center received more than 41,000 reports about such schemes, and reported losses reached $5.8 billion. These are no longer isolated cases. This is a mass flow.

“We work diligently with law enforcement and private partners to leverage the power of technology to combat these threats,” said Assistant U.S. Attorney Seth Herz, who led the case.

TRM Labs separately emphasizes that pig butchering remains one of the most expensive forms of crypto fraud. And there is another important detail here: in 2022, various types of fraud took about $9.04 billion, while the FBI is now counting tens of thousands of complaints each year. For the market, this is not a signal of a single blow against criminals, but of sustained pressure on trust in crypto services.

• The DOJ seized $112 million in cryptocurrency.

• Courts in 3 U.S. districts authorized the seizure of 6 accounts.

• In 2024, the FBI received more than 41,000 complaints about such schemes.

• Reported losses for 2024 reached $5.8 billion.

• In 2022, crypto-related fraud brought criminals about $9.04 billion.

What does this mean for investors?

For those who hold crypto, the main takeaway is simple: the most dangerous entry point is often not an exchange, but the person on the other side of the screen. Scammers play on trust, not on technology. In the DOJ materials, there is an example where the victim was contacted on LinkedIn under the name Fei Kuang, and after trying to withdraw funds, was asked to pay an additional 20% “tax.” The total loss in that episode was about $2.5 million.

There is also a broader lesson for Ukrainian users. If someone writes to you in a messenger, invites you into a “profitable” investment project, and asks you to quickly send USDT or BTC to an unclear website, that is already a red flag. Especially when they promise easy income and then ask for another 10%, 20%, or some kind of “fee” for withdrawal. In such situations, it is better to stop at the first step than to lose thousands of dollars later. And if you need to quickly and clearly sell Bitcoin on Monobank, it is better to do it through a transparent service, not through random links from a chat.

Another risk that emerged in 2026 is generative AI. Even a video call no longer guarantees that the person on the other end is real. Because of this, the old “investor friend” scenario has become even more convincing, so you need to verify not words, but the website address, domain, transfer history, and any request for an additional payment.

Frequently asked questions

What is pig butchering in cryptocurrency?

It is a scheme in which a scammer first builds trust with the victim over a long period, and then leads them to transfer money to a fake investment platform. After that, the person is shown “profit” on the screen, but the real assets are already controlled by criminals.

Can the confiscated $112 million be returned to victims?

Yes, that is exactly what the DOJ expects when it seizes digital assets. The case explicitly says these funds can be used to compensate losses, but the final mechanism depends on court procedures.

Why are such schemes so hard to stop?

Because money moves quickly through mixed transactions, multiple addresses, and different platforms. But this case shows that investigators already know how to track such chains and reach the accounts where assets can still be frozen.

For the market, this is unpleasant but useful news: law enforcement has learned to strike at schemes that once seemed almost impossible to catch. And for users, the conclusion is even simpler: do not believe in “easy” profits and do not rush to send funds to unknown addresses.

This material is not financial advice. Cryptocurrency trading involves significant risks. Part of this text was prepared with the help of artificial intelligence based on public sources and reviewed by our editorial team.