Tether Assists in Recovering $1.4M in Stolen Funds
On March 12, the U.S. Attorney’s Office in Chicago made an announcement regarding the seizure of approximately $1.4 million in Tether (USDT). These funds were believed to be the proceeds of a customer support scam. The recovery operation was carried out by the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI), with Tether’s assistance.
Tether released a press release expressing their satisfaction in collaborating with the U.S. government to combat financial fraud in the cryptocurrency industry. They consider the seizure of $1.4 million worth of Tether to be a significant milestone in their ongoing efforts to maintain integrity in this rapidly evolving field. Tether remains committed to protecting users and eliminating illicit activities, working alongside law enforcement agencies worldwide.
The customer support scam that resulted in the theft of funds primarily targeted elderly individuals. Victims were directed to a fraudulent customer support number through a popup ad on their computers, falsely claiming that their systems had been compromised. Once they contacted the number, they were informed of bank account issues and transferred to another scammer disguised as a support agent. The victims were then instructed to transfer their bank funds to USDT for supposed safekeeping. This led to the victims losing control of their tokens, and contact with the fraudsters was likely cut off.
The U.S. Attorney’s Office notes that this seizure is one of the first instances in which the U.S. has recovered USDT from an unhosted virtual currency wallet. The details of how the funds were recovered remain unclear as the investigation is ongoing. An affidavit filed on January 24 suggests that law enforcement agents traced the funds to five different wallets. These wallets reportedly contained assets traceable to a wire fraud scheme involving financial fraud, transferred through a series of intermediary addresses with the probable intent of laundering the proceeds.
4 thoughts on “Tether Assists in Recovering $1.4M in Stolen Funds”
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Tether is only collaborating now because they got caught red-handed. They should have been proactive in preventing scams in the first place.
This recovery operation is just a drop in the ocean. There are countless other scams out there, and Tether should have been more proactive.
Hooray for the recovery of $1.4 million worth of Tether! This is a victory against those who prey on the elderly. Let’s continue to stand against scams!
So, Tether is patting themselves on the back for something they should have been doing all along? Talk about a PR move.