The US government seized almost $9 million worth of Tether tokens traced to an organized network of scammers who stole millions from victims across the country.
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.
The seizure comes after agents and analysts from the U.S. Secret Service traced victim deposits that were laundered through several cryptocurrencies, a technique the DOJ described as “chain hopping” in its release Tuesday.
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Tether froze $225 million worth of its stablecoin on Monday following a collaborative investigation between the DOJ, crypto exchange OKX and Tether itself. Pig butchering is a scam that involves luring victims in with traditional romance scams. The victims are often requested to send cryptocurrencies overseas.
“This seizure should also serve as a reminder to cybercriminals that, although the current landscape of the cryptocurrency ecosystem may seem like an ideal way to launder ill-gotten gains, law enforcement will continue to develop the expertise needed to follow the money and seize it back for victims,” the DOJ said.
