- The US Attorney’s Office in Chicago seized $1.4 million in stolen Tether (USDT) on March 12th. Tether assisted law enforcement in recovering the funds, which were proceeds from a customer support scam targeting the elderly.
- The Department of Justice and FBI led the investigation and recovery efforts. This marks one of the first times the US has recovered stolen USDT from an unhosted virtual currency wallet.
- The funds were stolen through a scam where victims received fake tech support popups. They were instructed to transfer bank funds to Tether wallets to “keep them safe”, at which point they lost control of the tokens. The investigation is ongoing.
The US Attorney’s Office in Chicago announced that approximately $1.4 million in Tether (USDT) was seized on March 12th. The funds were suspected to be proceeds from a customer support scam.
Investigation Led by DOJ and FBI
The recovery efforts were led by the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI). According to the US Attorney’s Office, Tether assisted in the operation.
Tether’s Statement
In a press release, Tether stated:
“We are proud of our collaboration with the United States government in combating financial fraud within the cryptocurrency ecosystem. The seizure of $1.4 million worth of Tether (USDT) marks a significant milestone in our ongoing efforts to uphold integrity in this rapidly evolving industry…”
Funds Stolen Through Customer Support Scam
The funds were stolen through a customer support scam that targeted the elderly.
Victims received a popup ad stating their computer was compromised. It provided a fake customer support number that directed victims to transfer bank funds to Tether to “keep them safe.” At that point, victims lost control of their tokens.
A First for Recovering Unhosted Wallets
According to the Attorney’s Office, this seizure marks one of the first times the US has recovered USDT from an unhosted virtual currency wallet.
Ongoing Investigation
The investigation remains ongoing. An affidavit filed in January indicates law enforcement traced the funds to five distinct wallets.
The suspected wallets contained assets traceable to wire fraud. The funds were transferred in small batches through intermediary addresses, likely to launder the proceeds.
