The FBI recovered $6 million worth of USDT from Southeast Asian criminals resorting to pig butchering scams. Tether aided the authority in seizing the assets.
The Federal Bureau of Investigation (FBI) has seized $6 million from international scammers who employ confidence scams to steal millions from US victims. These scammers mostly reside in Southeast Asia, operating in groups to lure victims into their traps. They use social media platforms to pose as romantic interests or investment gurus. The technique is also referred to as pig butchering scams.
Once the bad actors gain victims’ confidence, they urge them to buy crypto, often stablecoins like Tether (USDT), to invest in platforms they set up. Of course, they promise high returns in the process. Once the victims transfer the assets to the nefarious platforms, the scammers cut ties or try to extort more.
According to an FBI statement, the perpetrators from whom the funds were recovered scammed “one or more individuals in the United States and fraudulently obtained millions of dollars’ worth of cryptocurrency through a cryptocurrency confidence investment scheme.”
U.S. Attorney for the District of Columbia Matthew M. Graves mentioned, “The fact these fraudsters and their accounts are typically located outside the United States, will not stop us or our partners at the FBI from doing all we can to recover the proceeds of these frauds and to hold the people running them accountable.”
Tether Has Worked With FBI and Other US Agencies to Reclaim Stolen Assets
One of those partners aiding the FBI was Tether. It announced that “it assisted the U.S. Department of Justice (DOJ) in successfully seizing over $6 million in assets linked to a crypto-confidence scheme based in Southeast Asia.” Tether’s functionality to freeze the flow of illicit funds enables it to assist law enforcement agencies, like the FBI, in stopping criminal activity and retrieving crime-related funds.
The largest stablecoin issuer also announced last month that it assisted the Department of Justice (DoJ) in retrieving $5 million from a similar pig butchering scam. Furthermore, Tether has helped reclaim over $108 million since its inception in 2014.
“We stand ready to collaborate with government agencies and deliver all necessary tools to ensure that global bad actors are brought to justice and that ultimately, the victims are supported,” said Tether CEO Paul Ardoino. “It doesn’t matter where they are, we will leverage all of our resources and work with our partners domestically and internationally to stop them from stealing people’s hard-earned money,” mentioned FBI Criminal Investigative Division Assistant Director Chad Yarbrough.
