Key takeaways:
- On March 12, the Chicago, Illinois, United States Attorney’s Office declared an almost $1.4 million seizure in Tether.
- The Attorney’s Office claims that the funds were stolen through customer support fraud, primarily targeting the elderly.
On March 12, the Chicago, Illinois, United States Attorney’s Office declared an almost $1.4 million seizure in Tether.
The funds were thought to be the earnings of a customer assistance scam. The Federal Bureau of Investigation (FBI) and the Department of Justice (DOJ) oversaw the recovery efforts. According to the US Attorney’s Office, Tether reportedly helped with the operation. As stated in a Tether press release:
“We are proud of our collaboration with the United States government in combating financial fraud within the cryptocurrency ecosystem. 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. Our commitment to safeguarding users and eradicating illicit activities remains unwavering. Together with law enforcement agencies across the globe, we will continue to lead the charge in fostering a safer and more secure environment.”
The Attorney’s Office claims that the funds were stolen through customer support fraud, primarily targeting the elderly.
The victims were identified through a computer pop-up advertisement. The advertisement informed the victim that their computer had been infiltrated and provided them with a fictitious customer service number. They were then told that their bank accounts had also been compromised and had been transferred to another fraudster posing as a support person when they called the number.
Subsequently, the victims were instructed to move their bank funds—which were purported to be kept secure—to USDT. The victims were probably cut off from the alleged scammers and lost control of their tokens.
It’s unknown how the funds were recovered at this point because the investigation is still ongoing, but according to an affidavit submitted on January 24, law enforcement officials were able to link the dollars to five different wallets.
According to the document, the suspected wallets held assets that could be linked to the financial fraud proceeds of a wire fraud scheme. The assets were transferred in relatively small amounts of funds through several intermediary addresses for no apparent reason, most likely in an attempt to launder the proceeds.
The US FDIC warned in a speech on March 11th that bank customers and the US economy could miss out on opportunities if blockchain technology regulation is handled improperly. According to Hill, regulators need to set consistent guidelines to guarantee that deposits of all kinds are handled fairly.
