Tether Freezes Wallets, Aids DOJ in Crypto Scam Case

The U.S. Department of Justice (DOJ) recently announced the recovery of nearly $5 million worth of USDT, a stablecoin issued by Tether, which was stolen in a widespread crypto investment scam. The success was largely due to the cooperation of Tether, which played a crucial role in tracing and freezing the stolen funds.

The scam, commonly known as “pig butchering,” involves fraudsters who establish romantic relationships with their victims to gain trust. They then convince the victims to invest in fraudulent cryptocurrency schemes. Once the funds are transferred, the scammers move the money through multiple wallets, making it difficult to trace.

However, the FBI was able to track the stolen assets through various crypto wallets. U.S. Attorney Michael Easley praised these efforts, saying, “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.”

Tether played a significant role in this operation by freezing multiple wallets linked to the scam, which allowed the DOJ to seize the funds. The DOJ expressed its appreciation for Tether’s assistance, noting that the collaboration was key to the success of the operation.

Paolo Ardoino, Tether’s CEO, reiterated the company’s stance against the misuse of cryptocurrencies, stating, “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.”