Tether Assists US DOJ and FBI in Seizure of $1.4 million dollars USDT in Stolen Funds

Tether US DOJ USDT
Last updated:
Journalist
Journalist
Hassan Shittu
About Author

Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

The U.S. Attorney’s Office in Chicago, Illinois, announced the successful seizure of approximately $1.4 million in Tether (USDT) on March 8, suspected of being proceeds from a fraudulent customer support scam.

Recovery efforts were spearheaded by the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI), with assistance from Tether in facilitating the operation.

U.S. Authorities Seize $1.4 Million in Tether in Fraud Scheme Bust

According to the U.S. Attorney’s Office, the alleged fraud scheme was initiated through deceptive computer pop-ups claiming the victim’s system had been compromised. Depending on their operating system, victims were directed to contact purported tech support representatives from Microsoft or Apple. Subsequently, victims were misled into believing their bank accounts were compromised, and they were transferred to individuals posing as bank fraud department employees. Through coercion, victims were persuaded to convert funds from their traditional bank accounts into cryptocurrency, purportedly for safekeeping from hackers. These funds were then funneled into unhosted cryptocurrency wallets controlled by the perpetrators, impacting victims across the United States, with a notable prevalence among the elderly demographic.

Tether issued a statement expressing pride in collaborating with the U.S. government to combat financial fraud within the cryptocurrency ecosystem in response to the seizure.

The company emphasized its commitment to upholding integrity in the industry and safeguarding users against illicit activities, pledging continued cooperation with law enforcement agencies worldwide.

“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,” a post from Tether on March 12 stated.

U.S. Authorities Make Strides in USDT Seizure, Highlight Collaborative Efforts

The recent seizure of $1.4 million in Tether (USDT) marks a milestone for U.S. law enforcement, representing one of the earliest successful recoveries from an unhosted virtual currency wallet. As the investigation unfolds, details regarding the recovery methods remain undisclosed, although an affidavit filed on January 24 provides insights into the tracing of funds to five distinct wallets linked to the fraudulent scheme.The affidavit notes that the suspected wallets contained assets traceable to wire fraud proceeds, transferred through intermediary addresses in small batches, likely in an attempt to launder the proceeds.Tether has risen as a critical partner in digital currency law enforcement efforts, actively collaborating with U.S. authorities to assist in freezing assets linked to illicit activities. Notably, in December, Tether froze assets in 41 wallets associated with individuals on the U.S. Office of Foreign Assets Control (OFAC) sanctioned list.In a letter in December, Tether revealedthat it had frozen 326 wallets containing $435 million worth of USDT for U.S. authorities, demonstrating its commitment to supporting law enforcement efforts. The company’s proactive stance extends globally, with cooperation spanning 19 jurisdictions and ongoing assistance provided to law enforcement agencies worldwide.Tether’s efforts have extended beyond asset freezes, with the company actively offering information to aid ongoing investigations. Tether froze 800 million USDT in secondary market addresses as well, primarily associated with hacking and theft incidents. The company’s collaboration with the U.S. Department of Justice alone has seen it respond to 68 requests, blocking 188 wallets containing 70 million USDT.

More Articles

Price Analysis
Libra Scandal Rocks the Crypto World – Will TRUMP Coin Benefit From the Fallout?
Michael Davis
Michael Davis
2025-02-19 00:07:32
News
World of Women and Artist Sara Baumann Launch Free NFT Portrait Series
Tanzeel Akhtar
Tanzeel Akhtar
2025-02-18 23:43:46
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors