Tether Worth $9M Tied to 'Pig Butchering' Scams Is Seized by U.S. DOJ
Tether said Monday it froze $225 million of its USDT stablecoin in light of DOJ investigations.
Updated Mar 8, 2024, 5:26 p.m. Published Nov 21, 2023, 3:15 p.m.
The U.S. Department of Justice (DOJ) said it seized $9 million worth of the tether [USDT] stablecoin linked to an organization that exploited victims through a "pig butchering" scam.
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.
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.
Read more: Tether Freezes $225M Linked to Human Trafficking Syndicate Amid DOJ Investigation
Oliver Knight
Oliver Knight joined CoinDesk as a news reporter in April 2022. Before joining CoinDesk, Knight was the Chief Reporter at Coin Rivet for three years. Having graduated with a journalism degree from Birmingham City University, Knight went on to work at various sports publications before diving into the world of Bitcoin in 2014. He does not have any crypto holdings.
