In a significant crackdown on cyber fraud, the U.S. Justice Department, in collaboration with the U.S. Secret Service, has seized nearly $9 million in Tether (USDT) from a criminal network. This network was involved in widespread romance and cryptocurrency scams impacting over 70 victims across the nation. The operation successfully disrupted the so-called "pig butchering" schemes, where fraudsters presented fake investment opportunities on non-existent platforms.
Acting Assistant Attorney General Nicole M. Argentieri lauded the operation's effectiveness in halting these deceptive practices. The investigative team employed advanced techniques such as "chain hopping" to trace the laundered money through various cryptocurrencies. This method involves moving funds across multiple exchanges and wallets to obfuscate the trail of illegal proceeds.
The Secret Service's investigation benefitted from victim reports submitted through the Internet Crime Complaint Center (IC3) and the Federal Trade Commission's Consumer Sentinel Network. These reports were instrumental in mapping out the fraudulent activities and pursuing the perpetrators.
Special Agent in Charge Shawn Bradstreet from the USSS San Francisco Field Office emphasized their ongoing commitment to combating cyber-enabled financial crimes. The National Cryptocurrency Enforcement Team, led by Georgiana MacDonald, Chris Kaltsas, and Galen Phillips, is handling the legal actions related to the seizure and forfeiture of assets. Tether has cooperated in transferring the recovered assets, demonstrating the joint effort between law enforcement and private sector entities in addressing such crimes.
This seizure comes on the heels of a coordinated action on Monday involving Tether and cryptocurrency exchange OKX, which froze $225 million in USDT linked to a human trafficking ring based in Southeast Asia. Together, these operations underscore a growing trend of collaboration between government agencies and cryptocurrency platforms to target illicit activities in the digital asset space.
The U.S. Secret Service's tracing efforts highlight law enforcement's growing expertise in tracking and recovering ill-gotten gains within the crypto ecosystem. The joint operation with crypto exchange OKX and the DOJ aimed at dismantling financial networks behind such scams and aiding victim recovery. This further emphasizes the increasing collaboration between law enforcement agencies and cryptocurrency platforms to tackle illicit activities in the digital asset space.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.