In a landmark move, the United States Attorney’s Office in Chicago, Illinois, has announced the successful seizure of approximately $1.4 million in Tether (USDT) on March 12.
This marks a significant development as it is one of the first instances where the U.S. has recovered USDT from an unhosted digital currency wallet, signaling a robust response to cryptocurrency-related fraud.
The funds in question were suspected to be proceeds from a customer support scam, and recovery efforts were spearheaded by the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI), with notable collaboration from Tether, a major player in the cryptocurrency space.
According to the U.S. Attorney’s Office, Tether actively participated in the operation, and a press release from the company expressed pride in their collaboration with the U.S. government to combat financial fraud within the cryptocurrency ecosystem.
The seized $1.4 million worth of Tether is viewed as a significant milestone in ongoing efforts to maintain integrity in the rapidly evolving cryptocurrency industry, with a steadfast commitment to user protection and eradicating illicit activities.
The illicit funds were reportedly obtained through a customer support scam that predominantly targeted the elderly demographic. Victims were lured in via a popup ad on their computers, claiming that their devices had been compromised.
Subsequently, victims were provided with a fake customer support number, initiating a chain of events where they were informed about compromised bank accounts and directed to another scammer posing as a support agent.
As part of the scam, victims were coerced into transferring their bank funds to USDT, under the guise of ensuring their safety. Once the funds were converted into USDT, victims lost control of their tokens, and contact with the fraudsters was likely severed.
The U.S. Attorney’s Office underscores the groundbreaking nature of this seizure, emphasizing that it is one of the initial instances where the U.S. has successfully recovered USDT from an unhosted digital currency wallet. While the investigation is ongoing, details regarding the recovery process remain unclear.
The affidavit notes that these wallets contained assets “traceable to proceeds of a wire fraud scheme involving financial fraud.” The funds were transferred in small batches through intermediary addresses, suggesting an attempt to launder the proceeds of the fraudulent scheme.
Tether’s proactive cooperation with law enforcement highlights how the regulatory and enforcement environment surrounding cryptocurrencies is changing.