U.S. authorities have seized almost $5 million worth of Tether allegedly associated with 'pig butchering' scams.

The Tether was stolen using cryptocurrency investment scams, and the investigation team collaborated with Tether for its help in transferring the assets, said the U.S. Attorney for the Eastern District of North Carolina in a statement.

The FBI's Response

'As criminal actors continue to evolve in the world of cyber-enabled fraud, the FBI and its law enforcement partners must also evolve,' said FBI agent Robert DeWitt.

'This cryptocurrency seizure serves as an example of the FBI adapting to the changing criminal landscape and fighting for victims of cyber-enabled fraud schemes,' warned DeWitt.

Rise in Scams

In June, the U.S. Federal Trade Commission (FTC) warned consumers about the rise in "pig butchering scams" or romance scams involving crypto investments.

Pig butchering is a term that originated in Southeast Asia and comes from the Chinese phrase Shāz Hū Pán. This catfishing-inspired scam usually involves a slow-burning, long-term fraud.

What is the 'Pig Butchering' Scam Involved?

To develop their trust, criminals approach and recruit victims under the pretense of a romantic relationship.

Pig butchering is a form of sophisticated online fraud, often targeting unsuspecting individuals through the guise of a romantic relationship. The term 'pig butchering' refers to the scammer's 'fattening up' the victim, much like a farmer would fatten a pig before slaughter by gaining their trust.

How the Scam Unfolds

To initiate the scam, criminals approach their victims through dating apps, social media, or even messaging platforms, pretending to be romantic partners.

Once they have built up trust and intimacy over weeks or even months, the scammer introduces the idea of a lucrative cryptocurrency investment opportunity. The scammer then directs the victim to a fictitious crypto trading platform, often made to resemble a legitimate, well-known trading site.

Fake platforms are designed to show abnormally large returns on investment, which is meant to persuade the victim to continue investing more money. As the phony portfolio displays increasingly impressive gains, the victim is further manipulated into believing they are on the path to substantial wealth.

However, when victims attempt to withdraw their funds, they cannot do so. Scammers provide a variety of excuses to justify the blocked withdrawal, often claiming that a 'tax,' 'penalty,' or additional fee must be paid to release the funds. This is just another tactic to extract even more money from the victim.

Ultimately, the victim's funds are never returned. When they realize they have been scammed, the criminals often disappear, leaving them with devastating financial losses and shattered trust.

Any scam victims are encouraged to file a report with the IC3 at ic3.gov and the FTC at www.reportfraud.ftc.gov.