Tether, the largest stablecoin issuer in the world (USDT), says it helped Uncle Sam battle an alleged tech scam.
Tether says that it assisted the Feds in seizing $1.4 million in stolen funds from a fraud. The company said this highlights its commitment to fighting criminals and supporting a safe place for crypto. Tether reports that it helped the US Department of Justice and Federal Bureau of Investigation (FBI) in their seizure of $1.4 million worth of USDT.
In a blog post, Tether CEO Paolo Ardoino said they are proud of the assistance they provided to the government in fighting the fraud, describing the collaboration as “a significant milestone in our ongoing efforts to uphold integrity in this rapidly evolving industry,”
“Our commitment to safeguarding users and eradicating illicit activities remains unwavering. Together with law enforcement agencies across the globe, we will continue to lead the charge in fostering a safer and more secure environment.”
Last Friday, the US Attorney’s Office in Chicago said the funds would be returned to victims of the fraud scheme. The seizure is said to be one of the first times the government has recovered USDT from an unhosted virtual currency wallet. The US Attorney’s Office acknowledged Tether for its help in transferring the assets.
The alleged fraud remains under investigation. According to the Feds, the trap was enacted by a computer popup that indicated a victim’s computer had been compromised. The popup directed the victim to contact Microsoft or Apple, depending on the victim’s operating system, at a certain telephone number. Once on the phone, the perpetrators, posing as tech support employees, informed the victim that the victim’s bank account had also been compromised. They then transferred the call to others posing as employees of the fraud department of the victim’s bank. The perpetrators convinced the victims to convert money from traditional bank accounts into cryptocurrency to keep it “safe” from hackers. The funds were then transferred into unhosted virtual currency wallets controlled by the perpetrators.
The seizure warrant outlines the process of the fraud.
