The U.S. Department of Justice (DOJ) has recovered almost $5 million in stolen cryptocurrency, thanks in part to the help of stablecoin issuer Tether. This money was taken from victims of a common crypto investment scam known as “pig butchering.”
How the Scam Works
These scams target people romantically, building trust before leading them into fake crypto investments. The scammers then move the stolen money through many different crypto wallets to hide its origin.
Tracking Down the Criminals
FBI agents and analysts tracked the stolen funds by meticulously analyzing numerous crypto wallets. U.S. Attorney Michael Easley said, “People are losing their life savings to investment scams, with the money quickly disappearing to overseas crypto accounts. We’re fighting back, even when the criminals are abroad. We’re determined to seize their ill-gotten gains and return the money to the victims.”
Tether Steps Up
The DOJ expressed gratitude to Tether for its assistance in seizing the millions of dollars in USDT. Tether helped by freezing multiple wallets suspected of holding the stolen funds.
Tether CEO Paolo Ardoino stated, “We strongly condemn the use of USDT or any cryptocurrency for criminal activities. We’re fully committed to working with law enforcement to fight fraud.”
