DOJ Thanks Tether for Assistance in Seizure of $5,000,000 USDT in Fraud Scheme

The U.S. Department of Justice (DOJ) says stablecoin issuer Tether has helped authorities recover funds stolen for victims of a prevalent crypto investment scam.

In a statement, the Justice Department announces the seizure of nearly $5 million worth of the stablecoin USDT that were traced to wallets allegedly used to launder the proceeds of pig butchering.

Bad actors involved in the scheme spark romantic relationships with their targets to gain their trust and get them to spend money on fraudulent crypto investment schemes.

The DOJ says scammers relocated the proceeds through many wallets in an effort to conceal the nature, source and ownership of the funds.

However, FBI agents and analysts were able to trace the funds by sifting through various crypto wallets. 

Says U.S. Attorney Michael Easley, 

“Americans are losing their life’s savings to investment frauds as funds are being rapidly transferred to cryptocurrency accounts overseas…

We are clawing back every dollar we can, even when criminals are located abroad. We are determined to seize their illegal proceeds and return money to the victims.”

The DOJ also thanks Tether for its assistance, which led to the seizure of millions of dollars worth of USDT. 

“The Department would like to acknowledge Tether for its assistance in effectuating the transfer of these assets.”

Tether says it assisted the FBI by freezing multiple wallets.

Says the firm’s CEO, Paolo Ardoino,

“We unequivocally condemn the misuse of USDT or any cryptocurrency for criminal activities. We are fully dedicated to our continued collaborative efforts with law enforcement to combat fraud.”

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