The US Department of Justice (DOJ) has seized over $8.2 million in USDT (Tether) that was stolen through a romance baiting scam, a type of fraud where victims are tricked into fake investment schemes.

On Feb. 27, the US Attorney’s Office in Ohio filed a civil forfeiture complaint to recover the stolen funds. Scammers used anonymous messaging apps to deceive victims into trusting them. One victim in Cleveland lost over $650,000, sending her retirement savings to a fraudulent investment platform.

According to TRM Labs, which investigated the scheme, “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.”

A ‘pig butchering’ scam, also known as romance baiting, is a form of financial fraud where scammers build trust with victims over time, often on social media or dating apps. They introduce fake investment opportunities, convincing victims to invest large sums of money. Initially, they may show small returns to gain trust, but eventually, they lock victims’ accounts and disappear with the funds.

The FBI’s investigation revealed laundering patterns connected to romance baiting scams. Tether, the company behind USDT, froze the stolen funds in June 2024, burned the original tokens, and reissued them to law enforcement in November 2024.

The DOJ used two legal approaches to seize the stolen money: funds directly linked to fraud were forfeited under wire fraud laws, while remaining funds were taken under money laundering laws. This ensures that victims can receive restitution, and the FBI is continuing to trace other stolen assets.

The DOJ complaint highlights that many of these scams are tied to human trafficking in Southeast Asia.

“First employed by Chinese organized crime groups, the particular type of investment fraud scheme detailed below initially targeted victims inside China then expanded worldwide during the global pandemic,” the report states.

It added that criminal syndicates in Cambodia and Myanmar force trafficking victims to operate these scams.

“This case underscores how public-private partnerships, sophisticated tracing tools, and smart legal strategies can lead to real-world impact,” TRM Labs said. “It’s not just about seizing crypto — it’s about getting justice for victims, many of whom lose their life savings.”