Tether Reallocates $108.8M in USDT Linked to Illicit Activity Since 2014

August 26, 2024 06:33 PM AEST | By Team Kalkine Media

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Tether Reallocates $108.8M in USDT Linked to Illicit Activity Since 2014 — Image source: shutterstock

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Tether has recently achieved a significant milestone in the fight against cyber fraud by assisting in the seizure of $5 million in USDT linked to pig-butchering scams. Since its inception in 2014, Tether has aided over 145 law enforcement agencies in recovering more than $108.8 million in USDT related to illegal activities.

Paolo Ardoini, CEO of {Tether} (USDT), emphasized the company's unwavering commitment to supporting global law enforcement efforts to address illicit uses of cryptocurrency. In a statement dated August 23, Ardoini affirmed Tether's dedication to collaborating with law enforcement agencies to combat fraudulent activities.

The latest operation involved Tether's cooperation with the United States Department of Justice (DOJ) to confiscate approximately $5 million in USDT from scammers engaged in a scheme known as "pig-butchering." In these scams, perpetrators build trust with victims, often through online romantic interactions, to persuade them to make substantial financial contributions before absconding with the funds. Tether’s collaboration with the DOJ also included coordinating with the Federal Bureau of Investigation (FBI) and the US Secret Service to enhance investigative efforts.

The seizure is considered a notable success in the ongoing battle against cyber-enabled fraud. Romance scams, including pig-butchering schemes, have seen a dramatic increase, with reported revenues growing 85-fold since 2020. These scams are particularly detrimental due to the large amounts typically involved and the sophisticated methods used to deceive victims.

The DOJ has highlighted that these fraudulent schemes often use fake investment platforms to present fictitious returns, encouraging victims to invest more. Once the funds are secured, they are frequently moved through cryptocurrency wallets to obscure the origins and ownership of the proceeds.

In a previous instance reported on March 12, Tether also assisted the DOJ in seizing approximately $1.4 million in USDT suspected to be proceeds from a customer support scam. This ongoing support underscores Tether’s role in enhancing the effectiveness of law enforcement operations against cryptocurrency-related fraud.

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