Tether and FBI Team Up to Recover $5 Billion in Crypto

• The DoJ commended Tether’s support in recovering funds linked to fraud.
• Scammers disguised as romance partners to steal from unsuspecting victims.
• Tether supported the FBI by freezing funds linked to the fraudulent transactions.

The U.S. Attorney’s Office for the Eastern District of North Carolina publicly commended Tether, the leading stablecoin issuer, for assisting in the recovery of funds connected to a major fraud scheme. Tether helped the Department of Justice transfer $5 billion in seized assets stolen through cryptocurrency investment scams known as “pig butchering.”

Court filings reveal that criminals lured victims of the scam by disguising themselves as romance partners to win their trust. After that, the scammers introduced the unsuspecting victims to fake crypto trading schemes, promising massive returns via what resembles a legitimate crypto trading platform.

The fraudulent trading firms showed fake investment portfolios with impressive gains to entice victims into investing more. When victims tried to withdraw their funds, scammers demanded additional payments for “taxes” or “penalties,” further exploiting them.

The Attorney’s office noted that FBI agents, with the help of Tether, traced victims’ funds into and through various crypto wallets after the scammers attempted to obfuscate the transactions. 

In the meantime, Tether has acknowledged the Department’s recognition, reaffirming its commitment to “combat illicit activities, stop the illegal use of stablecoin technology, and provide support to victims through its assistance to, and support of, law enforcement agencies globally.”

Tether emphasized that aiding the FBI in this investigation aligns with its core mission of safeguarding the financial system. The stablecoin issuer considers collaborating with the FBI as a demonstration of the value of its initiatives to combat nefarious activities and contribute to victim recovery, including onboarding the FBI and United States Service into its platform to effectuate synergy in investigations.