U.S. Authorities Seize $9M in Crypto from Romance Scam Fraudsters
Summary:
The U.S. Department of Justice seized around $9 million in Tether (USDT) cryptocurrency linked to a criminal group involved in romance scams. The confiscated assets were reportedly part of Tether's efforts to freeze $225 million in USDT associated with such scams. Using digital forensics, U.S. Secret Service investigators traced the laundered crypto which had gone through various wallet addresses and exchanges. The Justice Department acknowledged Tether's assistance in these processes. U.S. enforcement agencies are intensifying their operations against crypto-related crime, demonstrating increasing competence in tracking and seizing illicitly obtained funds.
The U.S. Department of Justice has confirmed the confiscation of Tether (USDT) cryptocurrency worth approximately $9 million. This seizure followed the decision by the stablecoin issuer to cold storage monetary assets linked to a criminal group notorious for orchestrating romance scams. The official communication from the Justice Department on November 21 posited the confiscated assets were secured from “fraudsters who defrauded American victims of millions” and were likely associated with Tether's action to freeze $225 million in USDT dispersed in “external self-governed wallets” related to this sophisticated fraud.
The stolen assets were supposedly linked to a group infamous for its “pig slaughter” romance scams. These fraudsters prey on unsuspecting online daters, often persuading them to stake money in seemingly genuine businesses, only to scam them eventually. “These fraudsters exploit common investors by designing websites that assure investors that their money is being invested profitably,” mentioned the Acting Assistant Attorney General, Nicole Argentieri. “The sad reality is, these global fraudsters are merely looting cryptocurrencies, leaving nothing for the victims [...] However, the cryptosphere might seem like an ideal platform to launder stolen money, our law enforcement agencies will persistently enhance their competency to trail the money and recover it for the victims.”
The investigators from the U.S. Secret Service successfully tracked down the digital currency that had been percolated through various digital wallet addresses and exchanges, a convoluted process known as “chain hopping.” Further, the U.S. Government recognized Tether’s role “for its aid in effectuating the transfer of these assets.”
In the past, American officials have exploited their power to freeze illicitly acquired money connected to crypto-based fraud and crimes. For instance, the government took control of an estimated 70,000 Bitcoin (BTC) associated with Silk Road in 2020. In October, the crypto firm 21.co reported that the U.S. Government now holds over $5 billion in cryptocurrency, basing its findings on previous seizures.
On November 21, the Justice Department hinted that it would be making an announcement about “major cryptocurrency enforcement actions" in partnership with the U.S. Treasury and Commodity Futures Trading Commission. It was widely speculated that this announcement was likely in regard to a reported $4-billion settlement with Binance, where Changpeng Zhao reportedly plans to step down. There seems to be a surging crackdown on crimes related to cryptocurrency by U.S. enforcing authorities.
Published At
11/21/2023 5:45:00 PM
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