U.S. Authorities Seize $1.4M in Tether from Customer Support Scam Targeting Elderly
Summary:
The U.S. Attorney’s Office in Chicago has announced the seizure of an estimated $1.4 million in Tether (USDT), believed to be proceeds from a customer support scam targeting primarily the elderly. The operation was led by the DOJ and FBI, and marks one of the first times the U.S. has recovered USDT from an unhosted virtual currency wallet. Investigations into the fund's recovery from five specific wallets are ongoing.
On March 12, The U.S. Attorney’s Office in Chicago, Illinois, revealed the confiscation of an estimated $1.4 million in Tether (USDT), presumed to be the earnings from a fraudulent customer support scam. The Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) spearheaded the retrieval operation. As per the U.S. Attorney’s Office, Tether participated in the secret operation, with a statement from the company reading, “The seizure of $1.4 million worth of Tether (USDT) demonstrates a significant stride in upholding honesty in this swiftly progressing industry. Together with global law enforcement agencies, we will persist in fostering a safer and more secure environment.”
The stolen funds were obtained via a customer support scam that principally preyed on the elderly. The scam lured victims through a bogus popup ad on their computers, alarming them that their computer was breached and providing a false customer service number. On calling the number, victims were misinformed that their bank accounts were compromised too and were redirected to a fraudulent support agent. The victims were then misled into converting their bank money to USDT under the guise of security. The victims lost dominance over their tokens and were likely cutoff by the scammers.
This confiscation signifies one of the inaugural instances of the U.S. retrieving USDT from an unmanaged virtual currency wallet, according to the Attorney’s Office. While the investigation is in progress, the manner of the funds’ retrieval is not clear. However, a legal document signed on January 24 suggests that enforcement agents managed to track the funds to five specific wallets containing assets supposedly linked to a wire fraud scheme and shuffled in minimal currency batches via a sequence of middleman addresses, likely in an attempt to whitewash the proceeds.
Published At
3/12/2024 6:35:36 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.