The controversial Frenchman said the 'F-word' seven times during a live BBC television interview on court after his first round victory over Giovanni Mpetshi Perricard earlier this week.
Having initially sworn unintentionally while answering the first question, a grinning Moutet repeatly swore again before interviewer Jenny Drummond pulled the plug.
The ATP announced on Friday the 27-year-old, who earned £33,000 for reaching the second round of the grass-court tournament, would be a hit with a fine that was virtually equal to his entire prize money.
The fine was imposed for "unsportsmanlike conduct" by using "profane language during his post-match interview", the ATP said.
Moutet, who was beaten in straight sets by Spanish fourth seed Alejandro Davidovich Fokina in the last 16, has confirmed he will appeal against the fine.
The world number 36 already had a reputation as one of the more volatile players in the men's game after a host of incidents in his colourful career.
Elsewhere at Queen's on Friday, American Brandon Nakashima shocked Australian top seed Alex De Minaur in the quarter-finals.
The 24-year-old, ranked 32, pulled off one of the biggest wins of his career with a 7-5, 6-3 victory.
"Very happy with my performance, it definitely wasn't easy," he said.
"It's never easy serving out a match, especially against a top player like Alex, so I was happy to win the last point."
Nakashima's semi-final opponent will be Francisco Cerundolo, who survived being hit in the throat to beat British wild card Arthur Fery 7-6 (7/1), 3-6, 6-4.
Early in the second set, Fery blasted a ball at close-range straight at the throat of Cerundolo, knocking the 27-year-old off his feet.
But the Argentine seventh seed got his revenge by winning the final set.
"Wow man, I got a shot here in my throat and I couldn't breathe. But after one or two games it went away. I got lucky," he said.
American eighth seed Tommy Paul defeated Davidovich Fokina 6-3, 7-6 (7/4) to remain on course for his second Queen's title.
Paul is undefeated in his last eight matches at Queen's since losing to Cerundolo in 2023.
The 29-year-old, who won the Queen's crown in 2024 and missed last year's event through injury, is bidding to join an exclusive club of Americans.
John McEnroe, Jimmy Connors, Pete Sampras and Andy Roddick are the only other multiple title winners at Queen's in the Open era.
Paul will meet France's Ugo Humbert in the semi-finals after the world number 33 routed Australian qualifier Rinky Hijikata 6-1, 6-2.