U.S. Justice Department, with Tether’s support, recovers 61 million USDT in scam proceeds

JH Kim

Summary

Tether said it supported the U.S. Department of Justice in recovering 61 million USDT in criminal proceeds from a “pig butchering” romance scam.
Tether said it worked with the DOJ to trace cryptocurrency addresses to which illicit funds were moved and to freeze and recover 61 million USDT.
Tether emphasized that the action underscores its commitment to working with law enforcement agencies worldwide to prevent virtual asset (cryptocurrency)-related crime and to lead the digital asset industry.

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Tether, the issuer of USDT, the world’s largest stablecoin, said it supported the U.S. Department of Justice (DOJ) in recovering 61 million USDT in criminal proceeds linked to a large-scale “pig butchering” romance scam case.

Tether said on its official website on the 25th (local time) that “DOJ investigators, based on victim reports, traced the cryptocurrency addresses to which the illicit funds were moved, and with Tether’s cooperation were able to freeze and recover a total of 61 million USDT.”

It added that “this action demonstrates Tether’s commitment to preventing virtual asset (cryptocurrency)-related crime by working with law enforcement agencies worldwide, and to leading the digital asset industry through compliance-focused management.”

A “pig butchering” scam is a fraud scheme in which perpetrators build trust with victims over an extended period and then induce them with fake investment opportunities to steal funds. Losses have been surging worldwide in recent years.