Tether Assists FBI in Seizing $1.4 Million from Fraudulent Wallet

Tether, the company behind the USDT cryptocurrency, revealed that it collaborated with the FBI and the U.S. Department of Justice (DOJ) to confiscate $1.4 million in USDT from a cryptocurrency wallet involved in a fraudulent scheme.

In a statement, Paolo Ardonio, Tether’s CEO, expressed the company’s commitment to fighting financial fraud within the digital currency space.

“We are proud of our collaboration with the United States government in combating financial fraud within the cryptocurrency ecosystem. The seizure of $1.4 million worth of Tether (USDT) marks a significant milestone in our ongoing efforts to uphold integrity in this rapidly evolving industry. Our commitment to safeguarding users and eradicating illicit activities remains unwavering. Together with law enforcement agencies across the globe, we will continue to lead the charge in fostering a safer and more secure environment.”

The fraudulent activity involved deceiving senior citizens through a computer pop-up that falsely claimed their device had been compromised. The Northern District of Illinois United States Attorney’s Office provided details on how the scam was conducted:

“The alleged fraud scheme, which remains under investigation, was initiated by a computer popup that indicated a victim’s computer had been compromised. The popup directed the victim to contact Microsoft or Apple, depending on the victim’s operating system, at a certain telephone number. Once on the phone, the perpetrators, posing as tech support employees, informed the victim that the victim’s bank account had also been compromised.”

Victims were then misled into converting their savings into cryptocurrency under the guise of protecting their funds from supposed hackers, ultimately funneling their assets into the scammers’ wallets.