69-year-old retiree loses $500,000 to pig butchering scam via ai-generated images and fake crypto platform in december 2025

Summary

US federal agents in North Carolina seized $61 million worth of USDt linked to a "pig butchering" crypto scam involving fake online relationships and fraudulent trading platforms. The scam, uncovered in February 2026, targeted victims through AI-generated images and fabricated personas, luring them into fake investment platforms with promises of high returns before blocking withdrawals. Investigators from Homeland Security tracked funds across multiple wallets, identifying addresses with remaining proceeds subject to forfeiture. Tether, the issuer of USDt, cooperated in the investigation to freeze and recover assets. The case highlights a surge in crypto fraud, with Chainalysis reporting $17 billion in losses in 2025, driven by AI-enabled impersonation scams that grew 1,400% year-on-year. A December 2025 victim lost retirement savings after being deceived by a scammer using AI-generated images and a fake investment platform.