Since 2014, Tether has “reallocated” $108.8 million in USDT derived from illegal conduct

According to Tether, the recent confiscation of $5 million USDT from pig-butchering schemes represents a “significant victory” in the ongoing battle against cyber fraud.

According to a recent announcement, stablecoin issuer Tether has assisted more than 145 law enforcement organizations in recovering more than $108.8 million in USDT associated with illicit activity since its introduction in 2014.

Tether CEO Paolo Ardoini stated in a statement dated August 23 that the company “remains strong in its goal to encourage global law enforcement efforts in fighting illegal uses of cryptocurrency.”

Tether, according to Ardoini, is “fully dedicated” to carrying on its law enforcement cooperation in the fight against fraud.

We strongly oppose using USDT or any other cryptocurrency for illicit activities.

Tether has “voluntarily blocked” more than 1,900 bitcoin wallets linked to illegal conduct globally since its launch.

Tether cooperation with the authorities

Most recently, Tether helped the US Department of Justice (DOJ) recover almost $5 million of its Tether USDT $1.00 token from con artists who deceived people into believing they were romantically interested in them before taking off with their money in a scheme known as “pig-butchering.”

Criminals who slaughter pigs usually meet their victims online and spend a lot of time gaining their trust in order to persuade them to make bigger investments.

According to Tether, the seizure of the funds represents a major triumph in the ongoing fight against fraud enabled by the internet.

Additionally, it stated that Tether’s inquiry involved bringing the US Secret Service and the Federal Bureau of inquiry (FBI) onto its platform “to effectuate synergy in investigations.”

Romance scams are becoming a serious issue

Data shows that romance scams have grown by 85 times since 2020, and their earnings more than doubled in 2023 compared to the previous year, Cointelegraph reported on February 23.

Due to the average payment size, Chainalysis believes that scams involving the butchering of pigs have the worst effects on their victims out of all scam kinds.

According to a statement released by the US DOJ on August 22, these fraudulent investment platforms show a phony investment portfolio with unusually high investment returns in an attempt to persuade the victim to make additional investments.

According to the DOJ, the money is transferred through cryptocurrency wallets after it is collected in order to conceal the type, origin, ownership, and control of the fraud proceeds.

On the other hand, on March 12, Cointelegraph revealed that Tether helped the DOJ seize about $1.4 million USDT because there were indications that the money was obtained through a customer service scam.

Tether Celebrates Recent $5M Win Against Romance Scams and Recovers $108.8M in Illicit USDT Since 2014

Tether has declared that, since its founding in 2014, it has successfully retrieved $108.8 million in USDT connected to illicit operations, marking a significant victory in the fight against cybercrime. This accomplishment demonstrates Tether’s continued dedication to thwarting cryptocurrency fraud and assisting international law enforcement initiatives.

A Significant Win Against Romance Scams

The latest high-profile case is the seizure of roughly USDT $5 million from frauds involving “pig-butchering.” These scams are becoming more common; usually, the perpetrators pose as potential romantic partners in order to gain the victims’ trust and eventually convince them to part with large sums of money. To hide their true source, the money is subsequently diverted and laundered through a number of cryptocurrency wallets.

Recently, the U.S. Department of Justice (DOJ) carried out a successful operation against these con artists with Tether’s help. This confiscation, which is a result of Tether’s cooperation with law enforcement organizations like the FBI and the US Secret Service, is regarded as a “significant victory” in the battle against fraud enabled by the internet.

Tether’s Persistent Dedication to Law Enforcement

Since its inception, Tether has collaborated with more than 145 law enforcement organizations worldwide to help recover money linked to illegal activity. Speaking about the company’s commitment to assisting these organizations, Tether CEO Paolo Ardoini said, “We unequivocally condemn the misuse of USDT or any cryptocurrency for criminal activities.”

The creator of the stablecoin has proactively blocked more than 1,900 cryptocurrency wallets linked to illicit activities. This covers both specific fraud cases and more general initiatives to stop the usage of cryptocurrencies in other illicit operations.

The Increasing Danger of Romantic Scams

It’s concerning how common romantic frauds are becoming. According to research, the revenue from these scams increased dramatically in 2023, growing 85 times since 2020. Due to the substantial amounts of money involved, the DOJ has noted that scams involving the butchering of pigs, in particular, have the worst effects on their victims.

In order to trick victims into making larger investments, these frauds frequently entail sophisticated fake investment platforms that display fictitious portfolios with astronomically high returns. Once the scammers have the money, they shift it across several cryptocurrency wallets using intricate methods that make it difficult for authorities to track down and retrieve.

Tether Part in Stopping Cryptocurrency Fraud

The crucial role that cryptocurrency issuers may play in the fight against fraud is highlighted by Tether’s involvement in this continuing conflict. Tether is preventing exploitation of the cryptocurrency field by working with law enforcement and utilizing cutting-edge tracking and recovery techniques, in addition to safeguarding its own ecosystem.

The organization’s proactive stance and fruitful partnerships with different authorities highlight the significance of industry collaboration in tackling the obstacles presented by unlawful activities in the domain of digital currencies. As the world of cryptocurrencies changes, Tether is unwavering in its resolve to fight fraud and assist international law enforcement agencies.

In conclusion, Tether’s recent victories versus romance scams and the recovery of $108.8 million in USDT linked to illicit activity are evidence of its dedication to creating a more secure and safe environment for cryptocurrencies.