U.S. DOJ Seizes $8.2 Million from Hackers Linked to Pig Butchering Scam

The U.S. Department of Justice has successfully seized over $8.2 million in cryptocurrency tied to an elaborate “pig butchering” fraud operation that victimized dozens of Americans.

On February 27, 2025, the U.S. Attorney’s Office for the Northern District of Ohio filed a civil forfeiture complaint against these funds, which were identified through sophisticated blockchain tracing techniques deployed by federal investigators.

The Scheme and Its Victims

The complaint details how fraudsters employed a complex social engineering tactic known as “pig butchering.”

In this scheme, scammers spend weeks or months building trust with victims before convincing them to invest in fraudulent platforms.

Using anonymous phone numbers and messaging apps, perpetrators created illusions of personal or romantic relationships with their targets, slowly manipulating them into making cryptocurrency investments on what appeared to be legitimate platforms.

Among the victims was a Cleveland-area resident who was persuaded to liquidate her entire retirement savings, ultimately transferring more than $650,000 in cryptocurrency to the scammers.

She represents just one of at least 31 identified victims across the United States who fell prey to this operation.

“These scammers prey on vulnerable individuals, cultivating relationships over extended periods specifically to gain trust before executing their financial fraud,” the complaint states.

Sophisticated Money Laundering Operations

Federal investigators uncovered an intricate money-laundering operation designed to obscure the origin of stolen funds.

According to the complaint, victim funds were methodically routed through a complex network of decentralized finance (DeFi) platforms, cross-chain swaps, and unhosted wallets, eventually consolidating in three TRON blockchain addresses.

Despite these complex obfuscation techniques, FBI agents leveraged blockchain intelligence to trace the movement of funds across multiple cryptocurrency networks and platforms.

According to the TRM Labs report, the investigation revealed telling patterns and wallet reuse, ultimately allowing authorities to connect the dots and identify the destination of victims’ money.

In this case, the DOJ employed a dual legal theory that allowed for comprehensive asset seizure.

Funds directly traceable to fraud were forfeited under wire fraud statutes, while remaining funds – believed to be connected to additional unidentified victims – were seized under money laundering provisions.

This strategic approach enabled the seizure of the full $8.2 million, preventing fraudsters from retaining any portion of their illicit gains while preserving funds for potential restitution to victims as the investigation continues.

Pig butchering scams represent one of the fastest-growing and most damaging forms of cryptocurrency fraud.

Law enforcement officials note that these operations are often linked to human trafficking networks in Southeast Asia, where victims are forced to work in scam compounds.

The FBI’s Cleveland Field Office continues to “trace backwards” from the seized addresses to identify additional victims who may be entitled to restitution from the recovered funds.

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