Federal prosecutors in Massachusetts moved to seize just over $200,000 in USDT this week, alleging the stablecoins are proceeds from a classic “pig-butchering” crypto investment scam that preyed on a local resident. What happened - The U.S. Attorney’s Office filed a civil forfeiture action Monday seeking recovery of the tokens, which investigators traced to a scheme that began with a Tinder match. - According to court filings, the suspect used the name “Nino Martin,” quickly moved the conversation to WhatsApp, and posed as a financial advisor who could help the victim trade cryptocurrency. - Following instructions, the victim opened an account on a trading site later identified as fraudulent and transferred funds. Law enforcement says the victim ultimately sent about $504,353 to the suspected platform; roughly $200,000 in USDT was later traced to a crypto account that was seized in June 2025 and identified as part of those losses. Why this matters - The case is a textbook example of “pig-butchering” scams—long-con attacks that combine romance or social engineering with fake investment platforms. Scammers cultivate trust, push victims to deposit money into seemingly legitimate trading sites, and extract escalating payments until victims discover the accounts show fabricated profits and their funds are gone. - Crypto-related crime surged in 2025: Chainalysis reports a 162% increase year-over-year, with illicit addresses receiving at least $154 billion, driven largely by spikes in flows to sanctioned entities. Pig-butchering has been a major contributor to that rise. Wider enforcement and criminal networks - Investigators say pig-butchering schemes are increasingly tied to organized crime networks, especially in parts of Southeast Asia. Over the past year authorities have targeted the underlying infrastructure—financial intermediaries and laundering networks—through sanctions and arrests. - Notable actions include sanctions on the money-laundering marketplace Huione in Cambodia and the arrest of Chen Zhi, head of Prince Holdings Group, who has alleged links to regional scam activity. Chinese authorities have also detained and prosecuted leaders of criminal families tied to scam and gambling compounds in Myanmar, with some receiving death sentences or lengthy prison terms. Why victims rarely get money back - Even when stolen funds are identified, recovery is difficult. Alex Katz, CEO and co-founder of Kerberus, told Decrypt that most victims “have little chance of getting their money back,” especially when funds are moved quickly across blockchains or converted into major cryptocurrencies. - Katz noted that freezing stablecoins may be possible in rare cases if issuers like Tether or Circle cooperate, but the process is “very difficult” and often close to impossible. Recoveries through centralized exchanges require rapid notification and police cooperation—something Katz says is uneven or unavailable in many jurisdictions. - He added that many law enforcement agencies lack established procedures for crypto fraud or decline cases that don’t involve very large sums, so pig-butchering victims often struggle to get meaningful help. Bottom line The Massachusetts forfeiture action underscores two trends: law enforcement is getting better at tracing and seizing crypto tied to scams, but the global, fast-moving nature of these schemes—and inconsistent international cooperation—means victims face steep odds in recovering losses. Read more AI-generated news on: undefined/news

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