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The most recent seizure of $5 million USDT from pig-butchering scams marks a “significant victory” in the ongoing fight against cyber fraud, according to Tether.
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Stablecoin issuer Tether has helped over 145 law enforcement agencies recover more than $108.8 million USDT linked to illegal activities since its launch in 2014, according to a recent statement.
“Tether remains resolute in its mission to support global law enforcement efforts in combating illicit uses of cryptocurrency,” Tether CEO Paolo Ardoini wrote in an Aug. 23 statement.
Ardoini claimed that Tether is “fully dedicated” to continue collaborating with law enforcement to combat fraud.
“We unequivocally condemn the misuse of USDT or any cryptocurrency for criminal activities.”
Since its launch, Tether has “voluntarily blocked” more than 1,900 cryptocurrency wallets worldwide that have been connected to illicit activity.
Tether’s work with law enforcement
Most recently, Tether assisted the United States Department of Justice (DoJ) in seizing approximately $5 million in USDT (USDT) from scammers who tricked victims by posing as romantic interests before disappearing with their money, a scam known as “pig-butchering.”
Tether explained that the seizure of funds “mark a significant victory in the ongoing battle against cyber-enabled fraud.”
It also noted that the investigation included Tether onboarding the Federal Bureau of Investigation (FBI) and the US Service into its platform “to effectuate synergy in investigations.”
Pig-butchering criminals typically meet their victims online and often spend a lot of time building trust with them to entice them to make larger investments.
Romance scams becoming a major concern
In the end, the scammers take the money and vanish, leaving the victim with nothing.
In 2023, these types of romance scams more than doubled in revenue year-over-year, with data indicating a growth of 85x since 2020, Cointelegraph reported on Feb. 23.
Related: Tether expands USDT to Aptos blockchain for lower fees
Chainalysis believes that pig-butchering scams have the “worst impact on victims of all scam types” due to the average payment size.
“These fake investment platforms display a fictitious investment portfolio with abnormally large investment returns, which is designed to induce the victim to invest more,” the United States Department of Justice wrote in an Aug. 22 statement.
The DoJ explained that once the funds are obtained they are then moved through crypto wallets to “obfuscate the nature, source, control, and ownership of those fraud proceeds.”
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This article first appeared at Cointelegraph.com News
