The United States Department of Justice (DOJ) has successfully confiscated approximately $9 million worth of USDT from an organization involved in pig butchering scams, with the help of Tether. This move comes after authorities tracked the funds to cryptocurrency addresses associated with an organization that defrauded over 70 victims through romance and crypto confidence scams. Tether has been actively working with law enforcement agencies and has recently partnered with the United States Secret Service (USSS). They are now set to collaborate with the Federal Bureau of Investigation (FBI).
Partnerships and Cooperation
Tether’s collaboration with the DOJ and the USSS has yielded positive results, leading to the successful seizure of the funds. Ismail J. Ramsey, the US Attorney, emphasized the significance of this collaboration, stating that Silicon Valley is a hub for crypto firms globally. He assured the public that authorities are committed to utilizing all available resources to bring justice to victims of frauds and scams, even across international borders. Ramsey further stated, “Even when money and criminals are abroad, we will work with our partners to seize cyber criminals’ illegal proceeds.”
The ‘Pig Butchering’ Scam
The organized network of scammers involved in the pig butchering scam employs tactics to deceive their victims. They allure inexperienced investors by making false promises, gaining their trust, and eventually deceiving them out of their money. In this case, the scammers convinced victims to deposit their funds with trusted firms and cryptocurrency exchanges under the guise of making profitable investments.
However, the United States Secret Service was able to trace the deposited funds and discovered that the scammers swiftly laundered the money through numerous crypto addresses. They further exchanged the funds for various cryptocurrencies, adopting a technique known as ‘chain hopping’ to launder the illicit gains. The seized funds were successfully linked to the reports filed by the victims.
“This significant seizure has disrupted the financial infrastructure of an organized network of scammers who stole millions from victims across the country,”
said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. Argentieri highlighted the deceptive nature of these international scammers, who exploit ordinary investors through fraudulent websites promising lucrative investments. She warned that law enforcement agencies possess the necessary expertise to track and retrieve stolen funds, in order to provide justice for victims.
