Justice Dept. Files to Seize Record $225 Million Tied to ‘Pig Butchering’ Crypto Scams
The post Justice Dept. Files to Take Record $225 Million Connected to ‘Pig Butchering’ Crypto Scams appeared on BitcoinEthereumNews.com. In short U.S. feds have actually said they have actually submitted to seize $225.3 million in USDT, Tether’s dollar-pegged stablecoin. The cryptocurrency in concern was connected to Asian ‘pig butchering’ or confidence scams. USDT issuer Tether dealt with the U.S. Secret Service to facilitate the seizure. Feds on Wednesday stated that they have filed to seize $225.3 million worth of Tether’s USDT stablecoin in the largest such forfeit associated with ‘pig butchering’ crypto scams, or confidence rip-offs. The U.S. Department of Justice stated that following an examination, it was able to determine that the substantial sum of crypto had actually been washed via the OKX exchange after scammers pinched it from would-be investors. All of the taken crypto remained in the form of crypto company Tether’s USDT coin, the third-biggest digital asset by market cap, the DOJ said. Tether first announced the investigation back in 2023, stating initially that the illicit use of its token was connected to human trafficking. ‘The complaint alleges that the cryptocurrency addresses that held the over $225.3 million in cryptocurrency belonged to a sophisticated blockchain-based money laundering network that carried out hundreds of thousands of transactions and was used to conceal the nature, source, control, and ownership of proceeds derived from cryptocurrency investment fraud,’ the DOJ said in a statement. ‘The scam operators distributed profits across an extensive group of cryptocurrency addresses and accounts on the blockchain to hide the source of the illegally obtained funds,’ it added. Tether CEO Paolo Ardoino stated in a statement: ‘We are setting the standard for compliance in digital assets and leading efforts to ensure stablecoins are not misused by bad actors.’ Court documents say that Tether in 2023 notified the United States Secret Service after discovering, along with crypto exchange OKX, that over 144 accounts on the exchange could be traced…
In short U.S. feds have actually stated they’ve filed to take $225.3 million in USDT, Tether’s dollar-pegged stablecoin. The cryptocurrency in concern was connected to Asian ‘pig butchering’ or confidence scams. USDT provider Tether worked with the U.S. Secret Service to facilitate the seizure. Feds on Wednesday said that they have filed to seize $225.3 million worth of Tether’s USDT stablecoin in the largest such loss related to ‘pig butchering’ crypto scams, or confidence scams. The U.S. Department of Justice stated that following an investigation, it was able to determine that the substantial sum of crypto had been washed via the OKX exchange after fraudsters pinched it from potential investors. All of the taken crypto was in the form of crypto firm Tether’s USDT coin, the third-biggest digital asset by market cap, the DOJ said. Tether first announced the investigation back in 2023, stating initially that the illegal use of its token was linked to human trafficking. ‘The complaint alleges that the cryptocurrency addresses that held the over $225.3 million in cryptocurrency were part of a sophisticated blockchain-based money laundering network that executed hundreds of thousands of transactions and was used to conceal the nature, source, control, and ownership of proceeds derived from cryptocurrency investment scams,’ the DOJ said in a statement. ‘The fraud operators distributed profits across an extensive group of cryptocurrency addresses and accounts on the blockchain to conceal the source of the illegally obtained funds,’ it added. Tether CEO Paolo Ardoino said in a statement: ‘We are setting the standard for compliance in digital assets and leading efforts to ensure stablecoins are not misused by bad actors.’ Court documents say that Tether in 2023 notified the United States Secret Service after discovering, together with crypto exchange OKX, that over 144 accounts on the exchange could be traced back to confidence scams also known as ‘pig butchering.’ Such scams which originate from China con individuals into handing over money after gaining their trust, often with fake social media profiles and sob stories. Because scammers liken the process to that of fattening up a pig before it is butchered, they are named as such. Law enforcement identified that the 144 accounts from IP addresses in the Philippines transferred $3 billion in crypto over the period of one year in what feds called ‘high-volume money laundering,’ court documents read. The DOJ did not immediately respond to Decrypt’s request for comment. USDT is a stablecoin a cryptocurrency pegged to the value of the dollar and usually the most traded digital asset in the industry. The USDT token which operates on a variety of blockchains is commonly used by traders to exit and enter crypto transactions. It is considered to be the backbone of the digital asset economy. El Salvador-based Tether frequently collaborates with law enforcement to ascertain if its crypto product has been used illicitly and stated that it has frozen $2.7 billion in tokens related to criminal activity. Edited by Andrew Hayward Daily Debrief Newsletter Start every day with the top news stories right now plus original features a podcast videos and more. Source: https://decrypt.co/325882/justice-dept-seize-record-225-million-pig-butchering-crypto-scams
In short U.S. feds have said they have actually filed to take $225.3 million in USDT, Tether’s dollar-pegged stablecoin. Feds on Wednesday said that they have submitted to take $225.3 million worth of Tether’s USDT stablecoin in the largest such loss related to ‘pig butchering’ crypto scams or confidence scams. All of the taken crypto was in the form of crypto firm Tether’s USDT coin, the third-biggest digital asset by market cap, the DOJ said. El Salvador-based Tether regularly collaborates with law enforcement to ascertain if its crypto product has actually been used illicitly and said that it has frozen $2.7 billion in tokens related to criminal activity.
