Anyone who receives an unexpected investment opportunity online should be cautious: Pig butchering is one of the fastest-growing scams in the digital sphere. In February 2026, US authorities, together with the cryptocurrency company Tether, seized nearly $61 million in USDT – funds originating from an internationally operating pig butchering organization. Rogert & Ulbrich advises victims whose funds have been lost through similar schemes.
What is pig butchering – and why is the term so unusual?
The term “Pig Butchering“This describes a specific form of investment fraud in which perpetrators systematically build up their victims' confidence over weeks or months before striking. The name derives from the practice of fattening a pig before slaughter – an image for the perpetrators' systematic approach, who initially lull their victims into a false sense of security before siphoning off their accumulated savings.”.
Contact is usually established via dating apps, social networks, or seemingly misdirected WhatsApp messages. The perpetrators build a relationship of trust over several weeks before bringing up the topic of cryptocurrency investments. They present fake trading platforms that appear professional and initially even show small profits – to entice the victim to deposit further sums. Once a sufficiently large amount has been deposited, the platform disappears – and with it, the money. These operations are often the work of internationally organized networks that seek out their victims worldwide.
If you have transferred funds to an investment platform and now no longer have access, you should seek legal advice immediately.
DOJ and Tether: The investigative success of February 2026
On February 25, 2026, Tether, the issuer of the USDT stablecoin, announced that the U.S. Department of Justice (DOJ) had recognized its cooperation in a seizure operation. Investigators from the Homeland Security Investigations (HSI) in Raleigh, North Carolina, had begun tracing stolen funds through multiple cryptocurrency wallets following a victim's report. The result: nearly $61 million in USDT was recovered. The funds originated from a pig butchering operation that had defrauded victims in several countries.
The speed of the seizure was only possible because Tether cooperated with authorities in real time and was able to freeze affected wallets. According to Tether, it has frozen approximately $4.2 billion in assets linked to illegal activities to date. The company works with over 310 law enforcement agencies in more than 64 countries.
The current case is not an isolated incident. In June 2025, Tether, together with OKX, enabled the DOJ to initiate civil proceedings against approximately $225 million in USDT from pig butchering fraud. In November 2025, the company assisted the Royal Thai Police and the U.S. Secret Service in securing $12 million from a transnational fraud network. In March 2025, $23 million in USDT linked to the Russian exchange Garantex was frozen. The list of documented cases is growing.
This case demonstrates that crypto fraud leaves traces – even when perpetrators use multiple wallets. Act early to prevent these traces from going cold.
How does pig butchering work in practice?
The typical pig butchering scam follows a clearly recognizable pattern. Victims often describe similar experiences:
- Initial contact: Seemingly random contact via a dating app, LinkedIn, or a misaddressed message. The perpetrator presents themselves as a friendly person.
- Building trust: Weeks or months of communication, often daily. The perpetrators invest considerable time in establishing a personal relationship.
- Investment tip: A seemingly random reference to a crypto trading platform. The victim is invited to initially invest small amounts.
- Fake winnings: The fraudulent platform displays attractive winnings. The victim deposits more money, recommends the platform to others, or even takes out loans.
- Scam: When attempting to withdraw winnings, "taxes" or "fees" suddenly appear. Eventually, the platform becomes inaccessible.
Victims lose considerable sums on average – in many documented cases between €10,000 and several hundred thousand euros. The psychological effect of building trust over a long period leads many victims to continue paying in even after the first warning signs.
If you recognize this pattern – whether as an affected person or for a close relative – have the situation legally assessed.
Legal options for affected individuals in Germany
In Germany, the loss of funds through pig butchering constitutes the criminal offense of fraud under Section 263 of the Criminal Code. Victims generally have the option of filing a criminal complaint and asserting civil claims for damages.
In practice, several approaches are relevant. Filing a criminal complaint allows for the involvement of the public prosecutor's office and cooperation with international authorities. Civil lawsuits are directed against identifiable individuals or companies that were involved with the platform—for example, payment service providers that knowingly forwarded funds. Forensic blockchain analysis often allows the whereabouts of cryptocurrencies to be traced far back; these findings can be used in court proceedings. The Federal Criminal Police Office (BKA) has specialized units for cybercrime; in cross-border cases, Europol must also be involved.
Important: The chances of success depend heavily on how quickly action is taken after the fraud. The more recent the transaction data, the sooner wallet addresses can be traced and funds blocked. Those who initially act independently and make mistakes can complicate their legal position.
Have your case reviewed before taking any action on your own – incorrect steps can make later legal action more difficult.
When is it worth hiring a lawyer in a pig butchering fraud case?
Pig butchering is a cross-border phenomenon. Perpetrators often operate from countries with which no or only limited mutual legal assistance agreements exist. Purely criminal law approaches therefore often reach their limits.
A lawyer experienced in cryptocurrency fraud can provide a realistic assessment of which civil legal steps are likely to be successful. This includes examining whether intermediary institutions – such as banks or payment service providers – can be held liable for the transfer of funds. The question of whether the fraudulent platform was promoted by third parties can also be legally relevant.
Many victims also have legal expenses insurance that can cover losses due to fraud. It's worthwhile having the policy terms reviewed before retaining legal counsel.
Contact us if you have been harmed by pig butchering. An initial assessment will show whether and what steps are advisable.
Conclusion
The seizure of nearly $61 million by the DOJ and Tether demonstrates that pig butchering fraud cannot permanently conceal stolen funds. Blockchain transparency and international cooperation between authorities and crypto companies make tracing possible – even across multiple wallets.
For those affected in Germany, the situation remains complex. The path from identifying fraudulent wallets to actually recovering funds is long and fraught with legal and practical hurdles. Early action, documented evidence, and qualified legal support are crucial.
Further information on cryptocurrency fraud and the legal options for victims can be found here. here.
Rogert & Ulbrich – Your lawyers in crypto fraud
Dr. Marco Rogert and Tobias Ulbrich are lawyers with experience in cases of cryptocurrency fraud and online fraud. The law firm Rogert & Ulbrich has handled numerous cases in this area and has a broad network of technical experts and forensic specialists in blockchain analysis.
The law firm represents clients both out of court and in court. Its services include the legal assessment of fraud damages, coordination with law enforcement agencies, and the examination of civil claims against third parties involved in the transaction.
Have you been a victim of pig butchering or a similar scam? Get in touch and secure your claims.
