Tether freezes $1.4m USDT linked to US tech scam

USDT stablecoin issuer Tether assisted the U.S. Department of Justice and the FBI in seizing around $1.4 million worth of USDT.

According to Tethers post on March 12, assets will be returned to victims of fraud. American authorities thanked the company for its help.

“The seizure of $1.4 million worth of Tether (USDT) marks a significant milestone in our ongoing efforts to uphold integrity in this rapidly evolving industry.”

According to Tether, the scam targeted mainly senior citizens throughout the United States. Fraudsters used pop-ups to trick victims into believing their computers had been hacked, encouraging them to contact technical support. The victims were then tricked into thinking their bank accounts were at risk, leading to the funds being converted into cryptocurrency to protect them from hackers. These funds were transferred to virtual currency wallets controlled by the attackers.

Tether is actively cooperating with U.S. authorities to help freeze its assets. In December, it froze assets in 41 wallets belonging to individuals on the U.S. Office of Foreign Assets Control (OFAC) sanctioned list.

Tether cooperates with 19 jurisdictions worldwide and assists in ongoing investigations by actively offering information to law enforcement agencies. The company froze 800 million USDT in secondary market addresses, mainly associated with hacking and theft. The company said it assisted the U.S. Department of Justice with 68 requests, blocking 188 wallets containing 70 million USDT.