US DOJ and Tether Team Up to Seize $6 Million in Crypto Scam Funds

Tether has assisted the U.S. Department of Justice in seizing $6 million in USDT linked to alleged cryptocurrency scams, marking a significant step in combating fraud.

Tether’s efforts include freezing accounts associated with hacks and illegal activities.

The DOJ’s focus is on scams from Southeast Asia that have targeted U.S. citizens. Tether has previously recovered $128 million in USDT for victims, demonstrating its commitment to addressing fraud in the crypto space.

Scammers often lure victims through chat apps to fake investment sites promising high returns. While initial payouts may occur, payments eventually stop, with some scammers demanding more funds to release assets.

U.S. Attorney Graves emphasized the deceptive nature of these schemes, as victims unknowingly transfer money to fraudsters. The FBI reported a 45% increase in crypto-related scams since 2022, highlighting cryptocurrency’s role in facilitating illicit activities.

Though USDT can blacklist addresses, its effectiveness depends on whether funds have been mixed. Many scams, often linked to organized groups in Southeast Asia, rely on building trust before defrauding victims. Concerns have also arisen over TRON-based USDT, which frequently involves large transactions, potentially obscuring illegal activities.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.