U.S. Moves $225M USDT Seized From Pig Butcher

Key Highlights

The U.S. government transferred $225 million in USDT seized from a pig-butchering scam.
The funds were sent directly to Tether, not to an exchange.
The move comes amid heightened market sensitivity to official crypto wallet activity.

The U.S. government transferred $225 million worth of USDT on Monday, moving funds seized from a large-scale pig-butchering scam in one of the largest stablecoin transactions tied to federal enforcement activity to date.

On-chain data from Arkham Intelligence shows the transfer originated from a wallet labeled Pig Butcher Seizures and was sent directly to Tether, the issuer of USDT. The transaction settled on Ethereum without involving any crypto exchange, suggesting an administrative or custodial action rather than a market-facing sale.

Pig-butchering scams have shifted from niche fraud into a major enforcement priority. These schemes lean on emotional manipulation and polished fake investment fronts, and they almost always settle in stablecoins. For investigators, the irony is rich: the same blockchains scammers use to move money quietly now give authorities a clear paper trail to follow, freeze, and claw funds back in plain sight.

Not a sale, but still watched

The transfer doesn’t scream “sell,” but when U.S. government wallets move, the market always looks up. Even routine shuffles tend to ignite chatter about reserve strategy, future auctions, or quiet custody changes. History shows most of these moves fade without consequence, but the mere involvement of official wallets is enough to keep traders guessing and watching every block.

The U.S. government is sitting on a massive crypto war chest, over 328,000 BTC, more than 62,000 ETH, and a hefty stack of USDT, quietly ranking among the world’s largest known sovereign holders of digital assets. It’s an ironic position for a regulator that still treats crypto with suspicion, yet controls a balance sheet big enough to move markets with a single transaction.

The U.S. Department of Justice has also faced renewed scrutiny after allegedly selling $6.3 million in Bitcoin forfeited by Samourai Wallet developers, a move that may conflict with Executive Order 14233. The order requires Bitcoin seized through criminal forfeiture to be retained within a U.S. Strategic Bitcoin Reserve rather than liquidated.

Multiple Media reports allege that Bitcoin was sold outside long-term government custody, prompting questions about compliance and agency discretion. Senator Cynthia Lummis warned the move could undermine the strategic reserve and repeat past missteps in managing seized crypto.

Market context remains tense

The transfer comes at a jittery moment for markets. Crypto has been tiptoeing through fresh U.S.–Venezuela tensions, with Bitcoin briefly flirting above $90,000 before cooling off. Traders tend to watch government wallets closely, but history shows nerves only really kick in when coins head toward exchanges or signal an actual sale. Until then, it’s noise, closely watched noise, but noise nonetheless.

For now, the $225 million USDT movement appears procedural, underscoring the growing role stablecoins play not only in crypto markets but also in law enforcement, asset recovery, and government-level balance sheets.