Tether, Binance, and OKX Join Forces to Disrupt $50M Crypto Romance Scam

A massive fraud scheme known as “pig butchering” has been disrupted after international authorities and major crypto companies teamed up to freeze nearly $50 million in USDT linked to scammers in Southeast Asia.

How the scam works

Pig butchering is a long-game con. Criminals first groom their targets through casual or romantic conversations, building trust over weeks or months. Once victims feel comfortable, they are persuaded to invest in fake trading platforms. Funds flow in, but instead of being invested, the money vanishes into criminal-controlled wallets.

Tether’s unique role

Unlike decentralized assets such as Bitcoin or Ethereum, Tether’s USDT tokens can be frozen if flagged as illicit. CEO Paolo Ardoino said the company has been actively working with law enforcement to lock stolen funds before they can be cashed out. He stressed that restitution for victims is the ultimate goal, highlighting the advantage of USDT’s controllability in fighting crime.

The investigation

The crackdown was driven by a coalition involving Binance, OKX, Chainalysis, and APAC law enforcement. Investigators traced transactions from dozens of victims through layers of intermediary wallets, eventually narrowing them down to just five addresses. Some transfers even included small “refunds” to victims, designed to create the illusion of legitimacy.

Binance’s Erin Fracolli emphasized that only strong public-private partnerships can break these criminal networks. OKX’s investigation team added that victims often blame themselves, but scammers exploit emotional vulnerabilities, not intelligence.

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Outcome and impact

In June 2024, at the request of authorities, Tether froze the funds, preventing criminals from converting them into fiat. Chainalysis revealed that the fraudulent activity spanned from November 2022 to July 2023, funneling millions through complex laundering techniques before consolidation.

This case highlights a growing trend: crypto companies are increasingly acting as gatekeepers against illicit finance. By working together with regulators and investigators, exchanges and stablecoin issuers are beginning to turn blockchain’s transparency against the very criminals who once exploited it.