Tether has 'redistributed' $108.8M USDT from illicit activity since 2014
The most recent seizure of $5 million USDT from pig-butchering scams marks a "significant victory" in the ongoing fight against cyber fraud, according to Tether.
Stablecoin issuer Tether has helped over 145 law enforcement agencies recover more than $108.8 million USDT linked to illegal activities since its launch in 2014, according to a recent statement.
“Tether remains resolute in its mission to support global law enforcement efforts in combating illicit uses of cryptocurrency,” Tether CEO Paolo Ardoini wrote in an Aug. 23 statement.
Ardoini claimed that Tether is “fully dedicated” to continue collaborating with law enforcement to combat fraud.
“We unequivocally condemn the misuse of USDT or any cryptocurrency for criminal activities.”
Since its launch, Tether has “voluntarily blocked” more than 1,900 cryptocurrency wallets worldwide that have been connected to illicit activity.
Tether’s work with law enforcement
Most recently, Tether assisted the United States Department of Justice (DoJ) in seizing approximately $5 million in USDT
USDT
$1.00
from scammers who tricked victims by posing as romantic interests before disappearing with their money, a scam known as “pig-butchering.”
Pig-butchering criminals typically meet their victims online and often spend a lot of time building trust with them to entice them to make larger investments.
Tether explained that the seizure of funds “mark a significant victory in the ongoing battle against cyber-enabled fraud.”
It also noted that the investigation included Tether onboarding the Federal Bureau of Investigation (FBI) and the US Service into its platform “to effectuate synergy
Romance scams becoming a major concern
In 2023, romance scams more than doubled in revenue year-over-year, with data indicating a growth of 85x since 2020, Cointelegraph reported on Feb. 23.
Chainalysis believes that pig-butchering scams have the “worst impact on victims of all scam.