U.S. Attorney’s Office Initiates Civil Forfeiture
In a significant legal move, the U.S. Attorney’s Office for Massachusetts initiated a civil forfeiture effort on Monday, aiming to reclaim more than $200,000 in USDT stablecoin that authorities allege were generated from a cryptocurrency investment fraud scheme. This particular case stems from an incident involving a Massachusetts individual who fell victim to a con artist met through the dating app Tinder.
The Scam: A Disturbing Trend
This scammer, posing as Nino Martin, lured the victim into an elaborate ruse centered around a fictional cryptocurrency trading opportunity. The nature of the deception fits into a disturbing trend known as “pig-butchering” scams, which combine elements of romance, social engineering, and financial fraud.
These scams often involve meticulous tactics where perpetrators cultivate trust over time, manipulating their targets into making payments to what they believe are legitimate trading platforms. Unfortunately, by the time victims recognize the scheme, their investments have disappeared, and the promised returns are nothing but an illusion.
Details of the Fraudulent Scheme
In this Massachusetts case, the victim was persuaded to shift their conversations from Tinder to WhatsApp—an approach commonly adopted by scammers to isolate victims from the safety of the original platform. Claiming expertise as a financial advisor, “Martin” guided the victim through the process of setting up an account on a fraudulent trading website and instructed them to send money, reportedly totaling around $504,353, through a legitimate financial institution to the suspected scam platform.
Law enforcement subsequently flagged the victim’s transactions as suspicious, triggering additional deceptive communication from individuals associated with the fraudulent platform, who provided false guidance on evading scrutiny.
Government Action and Recovery Efforts
Following their investigation, authorities traced part of the victim’s funds to a cryptocurrency account, which was seized in June 2025, leading the government to assert that the USDT taken corresponds to the victim’s incurred losses in this elaborate scam.
The rise of pig-butchering schemes has been linked to organized crime networks, particularly in Southeast Asia, with U.S. enforcement agencies ramping up efforts to dismantle the infrastructures supporting these scams. Recent actions have included sanctions against financial operations like Cambodia’s Huione and the arrest of Chen Zhi, the chief of Prince Holdings Group, who has connections to ongoing regional scams.
Additionally, Chinese law enforcement has taken significant steps against organized crime figures involved in similar fraudulent activities across borders, imposing stringent penalties including capital punishment for some.
Challenges in Recovery
While authorities are taking measures to identify and seize illicit funds, experts highlight the challenges victims face in recovering their losses. Alex Katz, CEO and co-founder of Kerberus, remarked that many victims find it nearly impossible to reclaim their stolen funds, especially as perpetrators rapidly transfer cryptocurrencies across different blockchains or convert them into mainstream digital currencies.
While a freeze on certain stablecoins might be achievable with the cooperation of companies like Tether or Circle, Katz noted that this process is fraught with complications and can seldom yield successful outcomes, especially when exchanges need to be rapidly informed to facilitate recovery.
The Need for Enhanced Cooperation
The disparity in law enforcement actions across various jurisdictions exacerbates the situation, with many agencies lacking proper protocols for addressing cryptocurrency fraud. Katz emphasized that the lack of robust response frameworks often leaves law enforcement struggling to determine the legitimacy of reports and prioritizing these cases inadequately, making recovery efforts for victims of pig-butchering scams increasingly difficult.
As illicit cryptocurrency activity surged by a staggering 162% in 2025, with illicit entities receiving over $154 billion, this case highlights the urgent need for enhanced global cooperation and streamlined procedures to combat and address rampant digital financial crimes.
