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.

Der Beitrag Pig Butchering Betrug – US-Behörden stellen 61 Millionen Dollar in USDT sicher erschien zuerst auf R&U.

The technical mechanism: A central lever in the decentralized world

Unlike fully decentralized cryptocurrencies like Bitcoin, stablecoins such as USDT and USDC are tokens issued by centralized entities (Tether and Circle). These issuers retain a degree of control over their tokens, which is directly programmed into the respective token's smart contract. This contract includes administrative functions that allow the issuer to intervene at the direction of law enforcement or in compliance with regulations.

The most important of these functions are:

• Blacklist: An address that is blacklisted can no longer carry out any transactions.
• Freeze: The tokens located at an address are blocked and can no longer be moved.
• Wipe: Ultimately, the frozen tokens can be removed from one address and transferred to another address, for example, that of the defrauded investor.

This issuer-level control is a crucial difference compared to other crypto assets. Even if the fraudster possesses the private key, they can no longer access the frozen funds. The assets are immobilized in the perpetrator's wallet, providing a critical time advantage for further legal action.

The practical process: From fraud to the freeze

For victims of crypto fraud involving stablecoins, this results in a concrete action plan. The operational process in practice generally follows these steps:

1. Detection of fraud and immediate response: Once the fraud is noticed, quick action is crucial, as the perpetrators often try to transfer the funds within hours.
   
2. Blockchain analysisA specialized service provider or law firm can trace the transaction chain to identify the wallet address where the stolen funds are located.
   
3. Contacting the issuer: With a detailed tracing report, a description of the facts, and ideally a police report, the issuer (Circle or Tether) can be contacted. A letter from a lawyer significantly increases the chances of success.
   
4. Implementation of the freeze: After reviewing the facts, the issuer's compliance department can initiate the appropriate steps and freeze the target wallet. This process can take only a few hours in the best-case scenario, but realistically, it takes 1-3 days.

The legal levers: How the freeze enables recovery

Freezing the funds is the first and most important step in securing the assets. It creates a crucial negotiating leverage, as the perpetrator can no longer access the funds. Simultaneously, civil claims against the perpetrator must be pursued. These include, in particular, claims based on unjust enrichment (Section 812 of the German Civil Code) and tort claims (Section 823 Paragraph 2 of the German Civil Code in conjunction with fraud, Section 826 of the German Civil Code).

The freeze serves as a kind of preliminary safeguard, securing the eventual enforcement of a judgment against the offender. In many cases, the pressure created by the freeze leads to an out-of-court settlement or compromise, as the offender has an interest in resolving the matter in order to potentially regain access to other funds not affected by the measure.

Conclusion: A decisive advantage for fraud victims

The ability to freeze centralized stablecoins like USDT and USDC is a crucial advantage for victims of crypto fraud. It breaks the anonymity and inviolability of the blockchain, providing those affected with an effective tool to secure their lost assets. Close collaboration between specialized lawyers, blockchain analysts, and the issuers of the stablecoins is key to success in this endeavor.

If you have fallen victim to a crypto scam involving stablecoins, you shouldn't waste any time. Contact a law firm specializing in crypto law immediately to assess your options and take the necessary steps. Our experienced lawyers are available to assist you with their expertise in asset recovery and Crypto fraud to your side and support you in enforcing your claims.

FAQ – Freezing stablecoins and recovering cryptocurrencies

Der Beitrag Kryptowährungen eingefroren: Wie Stablecoin-Anbieter wie Tether und Circle Betrugsopfern helfen können erschien zuerst auf R&U.