March 27, 2024
Latest Cryptocurrency News

US Authorities Seize $1.4 Million in Tether Amidst Fraud Investigation

A major breakthrough against digital fraud in the cryptocurrency sector was made by the United States Attorney’s Office in Chicago, Illinois. On March 12, Tether (USDT) valued at about $1.4 million was seized by the office believed to be criminal proceeds from a customer support scam.

Tether played a critical role in facilitating this operation with recovery efforts spearheaded by the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI). In a press release, Tether expressed satisfaction with working with the US government and their commitment to combating illicit activities within the cryptocurrency space.

Sophisticated Fraud Scheme Targets Elderly

Allegedly, the funds were stolen through a customer support scam that primarily targeted elderly people. Pop-up ads deceived victims into believing that their computers had been compromised and they should call a fictional customer support line. This resulted in victims being pushed to convert their bank savings into USDT on the pretense of securing their assets only for them to lose control over their tokens to the alleged scammers.

Milestone Achievement in Asset Recovery

This seizure represents a landmark moment in asset recovery efforts, marking one of the first instances where the U.S. has successfully retrieved USDT from an unhosted digital currency wallet. Although details regarding the retrieval process remain undisclosed, an affidavit filed earlier suggests that law enforcement agencies were able to trace the funds across five distinct wallets associated with the fraudulent scheme.

As the investigation progresses, authorities continue to delve into the intricate network of financial fraud, aiming to dismantle operations and bring perpetrators to justice. The collaborative efforts between law enforcement agencies and cryptocurrency entities like Tether underscore a collective commitment to fostering a safer and more secure financial landscape.

Image by wirestock on Freepik

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