Tether Aids in Freezing $6 Million from Crypto Fraudsters

Tether, the issuer of the stablecoin USDT, has assisted the U.S. Department of Justice in seizing assets worth over $6 million linked to crypto fraudsters from Southeast Asia.

Tether Assists U.S. Department of Justice in Seizing Over $6 Million in Alleged Proceeds Linked to Crypto-Confidence Scheme
Read more: https://t.co/ZVruF5UhvP

— Tether (@Tether_to) September 27, 2024

The scammers operated a “confidence scheme,” mimicking legitimate digital currency platforms.

A representative of the FBI described such schemes as “devastating” for thousands of Americans. According to him, victims lost “millions of dollars” hoping for investment opportunities, often refinancing their homes.

United States Seizes More than $6 Million in Alleged Proceeds of a Crypto-Confidence Scheme https://t.co/KK79L1lJUF @FBIKnoxville pic.twitter.com/yquCZ3EfHb

— FBI (@FBI) September 26, 2024

“[…] The FBI will stop at nothing to find these fraudsters who aim to exploit the advantages of American society. Regardless of their location, we use all our resources and cooperation with partners domestically and abroad to prevent them from stealing people’s hard-earned money,” the statement reads.

Tether noted that it has assisted more than 180 law enforcement agencies in 45 jurisdictions over time. The company has helped freeze approximately $1.8 billion, blocked 1850 wallets, and returned $128 million in assets to rightful owners.

“Tether is unwavering in its commitment to assisting law enforcement worldwide in curbing the misuse of cryptocurrencies. We are ready to cooperate with government bodies and provide all necessary tools to hold wrongdoers accountable and support victims,” emphasized the company’s CEO, Paolo Ardoino.

Concerns about the transparency of Tether’s reserves and business structure continue to be voiced within the community. Experts have drawn parallels to the situation preceding the collapse of FTX and Alameda Research.

The company has rejected such comparisons.