Background on the Perpetrators and Victims
In November 2023, the US authorities received an alert from Tether, a San Salvador-based organization that issues the same-named cryptocurrency. Tether collaborated with OKX, a Seychelles-based exchange platform, which cybercriminals had used to lure investments from individuals.
The investigation uncovered a complex network of interconnected accounts through which funds were passed multiple times, attempting to obscure their trail. The scammers promised individuals substantial commissions in exchange for depositing cryptocurrencies into OKX, subsequently freezing the sums and diverting them.
This scheme, known as “pig butchering,” originates from a Chinese expression. The criminals gain the victim’s trust, obtain their money, and then cut off access.
US Government’s Actions
The US government identified 144 suspicious accounts on OKX and, in early May 2025, obtained a federal court authorization in Washington to freeze the funds. This action resulted in the recovery of $225 million.
Impact on Victims
According to a US Department of Justice press release, dozens of people in the United States and over 400 victims worldwide fell prey to this scam.
Investigators traced the attacks back to computers in the Philippines and a call center in Makati, a Manila suburb. Many of the perpetrators were Vietnamese nationals, according to a document presented in a federal court in Washington on Wednesday.
Tether’s Role
All the stolen funds were converted into Tether (USDT), a “stablecoin” pegged to the US dollar.
Future Steps
Shawn Bradstreet, from the San Francisco office of the US Secret Service, stated that authorities hope the money can be returned to its rightful owners.
Key Questions and Answers
- Who was involved in the cryptocurrency scam? The scam involved cybercriminals who used the OKX platform and Tether’s USDT stablecoin to defraud investors.
- How much was recovered? The US government recovered $225 million.
- How many victims were there? Over 400 individuals were defrauded worldwide, with dozens in the United States.
- Where did the investigation lead? The investigation traced the attacks to computers in the Philippines and a call center in Makati, with many perpetrators being Vietnamese nationals.
- What is Tether (USDT)? Tether is a stablecoin pegged to the US dollar, which was used by scammers to convert stolen funds.
- What are the future plans for the recovered funds? Authorities aim to return the money to its rightful owners.
