Tether Aids Law Enforcement in Seizing $5M from Romance Scam: Full Details
Tether– Since its inception in 2014, stablecoin issuer Tether has played a significant role in the fight against cryptocurrency-related crime. Recently, Tether has announced that it has assisted over 145 law enforcement agencies in recovering more than $108.8 million in USDT linked to illicit activities. This achievement underscores Tether’s commitment to combating fraud and supporting global law enforcement efforts.
Tether’s Ongoing Commitment to Law Enforcement
In a statement released on August 23, CEO Paolo Ardoini emphasized the company’s dedication to fighting illegal uses of cryptocurrency. USDt remains resolute in its mission to support global law enforcement efforts in combating illicit uses of cryptocurrency, Ardoini stated. Tether has voluntarily blocked over 1,900 cryptocurrency wallets worldwide that were connected to criminal activities, reinforcing its commitment to preventing fraud.
Recent Achievements: $5 Million Seizure from Romance Scams
USDt’s recent collaboration with the United States Department of Justice (DOJ) led to the seizure of approximately $5 million in USDT from scammers involved in a scheme known as pig-butchering. This scam involves criminals posing as romantic interests to build trust and persuade victims to invest large sums of money, only to disappear with the funds. The successful seizure of these funds represents a significant victory in the battle against cyber-enabled fraud.
Partnership with Federal Agencies
The DOJ’s investigation also saw USDt onboarding the Federal Bureau of Investigation (FBI) and the US Secret Service to enhance the efficiency of the probe. This collaborative effort highlights Tether’s role in creating synergies between various law enforcement agencies to tackle cryptocurrency fraud more effectively.
Rising Concern Over Romance Scams
Romance scams have become increasingly prevalent, with a dramatic rise in revenue reported for 2023. According to Cointelegraph, revenue from romance scams more than doubled year-over-year, showing an 85-fold increase since 2020. These scams, often involving fake investment platforms with inflated returns, pose severe risks to victims, leading to substantial financial losses.
US DOJ’s Perspective on Fraudulent Activities
The US DOJ highlighted that scammers use fraudulent investment platforms to lure victims with fictitious high returns, leading them to invest more money. Once obtained, the funds are transferred through various crypto wallets to obscure their origins and ownership. This obfuscation makes it challenging to trace and recover the stolen assets.
Previous Efforts: Seizing $1.4 Million from Customer Support Scams
In another notable effort earlier this year, Tether assisted the DOJ in seizing approximately $1.4 million in USDT linked to a customer support scam. This case further demonstrates Tether’s proactive approach in addressing and mitigating fraudulent activities involving its stablecoin.
FAQs
What is Tether’s role in combating cryptocurrency crime?
Assists law enforcement agencies by recovering funds linked to illegal activities and blocking fraudulent cryptocurrency wallets.
What recent scams has assisted with?
Recently helped seize approximately $5 million in USDT from scammers involved in romance scams known as “pig-butchering.”
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