According to the U.S. Department of Justice (DOJ), the collapse of Heartland Tri-State Bank in Kansas was directly tied to a large-scale 'pig butchering' crypto scam involving over $225 million in laundered USDT. The DOJ's civil forfeiture action targets laundered USDT linked to a Philippines-based scam network that exploited the former bank CEO, Shan Hanes. Crypto exchange OKX provided critical intelligence, helping trace the movement of funds through at least 93 scam addresses and 100 intermediary wallets before consolidation into OKX accounts. The DOJ identified $3.3 million of the $47 million Hanes embezzled, highlighting ongoing risks associated with USDT in criminal activity and the importance of compliance and transparency for exchanges. Traders should note that increased scrutiny on USDT-related transactions and future government actions to stockpile seized digital assets could impact USDT market liquidity and trading sentiment, especially as USDT remains a top stablecoin in crypto trading pairs. (Sources: DOJ complaint, CNBC, OKX disclosures)

According to @paoloardoino, Tether (USDT) has been officially recognized by the U.S. Department of Justice (DOJ) for its assistance in the seizure of $225 million connected to a major pig butchering fraud scheme (source: tether.io/news/tether-ac…). This move demonstrates Tether’s commitment to compliance and risk management, signaling increased regulatory scrutiny for stablecoins. For crypto traders, this development may strengthen market confidence in USDT and other stablecoins, as transparent enforcement actions could reduce illicit activity and support broader crypto adoption (source: DOJ announcement, June 18, 2025).