U.S. authorities announced the recovery of $1.4 million worth of Tether (USDT) cryptocurrency on March 12th. The funds are suspected to be proceeds from a fraudulent customer support scheme that preyed on elderly victims.
The operation, a joint effort by the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI), targeted unhosted cryptocurrency wallets allegedly used by the scammers. According to a press release from the U.S. Attorney’s Office for the Northern District of Illinois, Tether, a leading stablecoin issuer, assisted law enforcement in the investigation.
“We are proud of our collaboration with the United States government in combating financial fraud within the cryptocurrency ecosystem,” Tether stated in the press release. “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.”
The scam reportedly involved fake pop-up ads displayed on victims’ computers. These pop-ups would warn users that their systems were compromised, urging them to contact a fake customer support number for assistance. Once contacted, the scammers, posing as legitimate tech support representatives, would employ scare tactics to convince victims that their bank accounts were also at risk. The scammers would then manipulate victims into transferring their savings into USDT, supposedly to safeguard their funds.
This case highlights the growing vulnerability of elderly individuals to online scams and the increasing use of cryptocurrency by criminals. The ability to convert stolen funds into cryptocurrency allows scammers to potentially move money quickly and anonymously across borders, making it more challenging for law enforcement to track and recover stolen assets.
This successful seizure demonstrates the evolving collaboration between law enforcement agencies and cryptocurrency companies. Tether’s cooperation in this case suggests a potential willingness within the cryptocurrency industry to work with authorities to combat criminal activity. However, some experts remain cautious, emphasizing the need for stricter regulations within the cryptocurrency space to further deter illegal activity.
The recovered funds are currently being held by the DOJ, with efforts underway to identify and return the stolen money to the rightful owners. This case serves as a stark reminder for the public to remain vigilant against online scams and to be wary of unsolicited calls or pop-up messages requesting financial information or urging the transfer of funds into cryptocurrency.
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This article first appeared on The WIRE and is brought to you by Hyphen Digital Network
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