The U.S. Department of Justice (DOJ) announced that stablecoin issuer Tether has assisted authorities in recovering funds stolen from victims of a widespread cryptocurrency investment scam.
in statement, The Department of Justice announced that it had seized approximately $5 million worth of the stablecoin USDT traced to a wallet allegedly used to launder proceeds from pig slaughter.
The bad actors involved in this scheme foster romantic relationships with their targets, gaining their trust and encouraging them to spend funds on fraudulent crypto investment schemes.
The Justice Department said the fraudsters moved the proceeds through multiple wallets in an attempt to conceal the nature, source and ownership of the funds.
However, FBI agents and analysts were able to trace the funds by scrutinizing various cryptocurrency wallets.
US Attorney Michael Easley said:
“Americans are losing their lifelong savings to investment scams as funds are rapidly transferred to offshore cryptocurrency accounts…”
“We are recovering all the money we can, even when the criminals are overseas. We are determined to seize their illicit proceeds and return money to the victims.”
The Department of Justice also thanked Tether for its assistance, which led to the seizure of millions of dollars worth of USDT.
“The Department would like to express its gratitude to Tether for their assistance in making these asset transfers possible.”
Tether says Supported The FBI was thwarted by freezing multiple wallets.
Paolo Ardoino, CEO of the company, said:
“We firmly condemn the misuse of USDT, or any cryptocurrency, for criminal activity. We are committed to continuing our efforts to cooperate with law enforcement in the fight against fraud.”
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