Tether, the prominent stablecoin issuer, has played a crucial role in assisting over 145 law enforcement agencies in recovering more than $108.8 million USDT tied to illicit activities since its inception in 2014, according to a recent announcement.
In a statement released on August 23, Tether’s CEO, Paolo Ardoini, emphasized the company’s ongoing commitment to supporting global law enforcement efforts in curbing the misuse of cryptocurrency. “Tether remains resolute in its mission to combat illicit uses of cryptocurrency,” Ardoini stated. He also reaffirmed Tether’s dedication to collaborating with law enforcement agencies to fight fraud and condemned any criminal use of USDT or other cryptocurrencies.
Significant Seizures and Law Enforcement Collaboration
Tether has voluntarily blocked more than 1,900 cryptocurrency wallets globally, all of which have been connected to illegal activities. This proactive approach underscores Tether’s commitment to maintaining the integrity of its platform.
One of the most recent cases involved Tether’s collaboration with the United States Department of Justice (DoJ) to seize approximately $5 million in USDT. This sum was linked to “pig-butchering” scams, where criminals posed as romantic interests to defraud victims. The perpetrators typically spend significant time building trust with their targets before convincing them to invest large sums of money, only to vanish with the funds. Tether described this seizure as a “significant victory” in the ongoing fight against cyber-enabled fraud.
The investigation was a coordinated effort, with Tether bringing the Federal Bureau of Investigation (FBI) and the US Secret Service into its platform to enhance the effectiveness of the probe.
Also Read: Celsius Files $3.5 Billion Lawsuit Against Tether
The Growing Threat of Romance Scams
Romance scams, particularly the “pig-butchering” type, have become a major concern. In 2023 alone, the revenue from these scams more than doubled compared to the previous year, with an alarming 85-fold increase since 2020.
According to Chainalysis, these scams have the most severe impact on victims compared to other types of fraud, largely due to the significant amounts of money involved. The scammers often create fake investment platforms that display fictitious portfolios with unusually high returns, enticing victims to invest more money.
The DoJ further explained that once the funds are obtained, they are moved through various crypto wallets to obscure their origins, making it difficult to trace the fraudulent proceeds. In a related case, Tether helped the DoJ seize roughly $1.4 million USDT, suspected to be linked to a customer support scam.
