Tether has “redistributed” $108.8 million USDT in proceeds from illegal operations since 2014

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

Since its inception in 2014, Tether, a stablecoin issuer, has assisted more than 145 law enforcement agencies in the recovery of over $108.8 million USDT associated with illicit activities, according to a recent statement.

In an Aug. 23 statement, Tether CEO Paolo Ardoini declared, “Tether remains resolute in its mission to support global law enforcement efforts in combating illicit uses of cryptocurrency.”

Ardoini asserted that Tether is “completely committed” to maintaining its partnership with law enforcement in order to combat fraud.

“We categorically denounce the use of USDT or any cryptocurrency for illicit purposes.” Tether has “voluntarily blocked” over 1,900 cryptocurrency wallets worldwide that have been associated with illicit activity since its inception.

Tether most recently aided the United States Department of Justice (DoJ) in the seizure of approximately $5 million in USDT from fraudsters who deceived victims by assuming the identity of romantic interests before vanishing with their money, a scheme referred to as “pig-butchering.”

The majority of pig-butchering perpetrators establish a rapport with their victims through online platforms and invest a significant amount of time in fostering trust in order to persuade them to make more substantial investments.

The seizure of funds “represent a significant victory in the ongoing battle against cyber-enabled fraud,” according to Tether.

The investigation also identified that Tether onboarded the Federal Bureau of Investigation (FBI) and the US Service into its platform in order to “facilitate synergy in investigations.”

Romance schemes experienced an 85x increase in revenue year over year in 2023, according to a report by Cointelegraph on Feb. 23.

According to Chainalysis, the average payment quantity of pig-butchering hoaxes has the “worst impact on victims of all scam varieties.”

In an Aug. 22 statement, the US Department of Justice stated that these fraudulent investment platforms present a fictitious investment portfolio with disproportionately high investment returns in order to encourage the victim to invest more.

The Department of Justice (DoJ) clarified that the funds are transferred through crypto wallets to “obscure the nature, source, control, and possession of those fraud proceeds” after they are obtained.

In the meantime, on March 12, Cointelegraph reported that Tether aided the Department of Justice in the seizure of approximately $1.4 million USDT after suspicions that it was the result of a customer support scheme.

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