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The United States Attorney’s Office in Chicago, Illinois, disclosed the seizure of approximately $1.4 million in <a href="https://coingape.com/tether-refutes-un-allegations-on-usdt-being-criminals-favorite/">Tether (USDT)</a>. The funds were allegedly linked to a fraudulent scheme involving customer support scams. The operation was a joint effort between the <a href="https://coingape.com/us-doj-tightens-grip-on-binance-ex-ceo-changpeng-cz-zhao-details/">Department of Justice </a>(DOJ), the Federal Bureau of Investigation (FBI), and Tether. The cryptocurrency company played a pivotal role in assisting government agencies to clamp down on financial fraud within the digital currency ecosystem. 
Tether released a statement expressing pride in its collaboration with the U.S. government. The company emphasized its dedication to combating financial fraud and maintaining integrity in the cryptocurrency industry. This seizure of USDT represents a significant achievement in Tether’s ongoing efforts to create a safer and more secure environment for users. The collaboration underlines the company’s commitment to eradicating illicit activities and safeguarding the interests of its community. 
<h2 id="strong-tether-collaboration-leads-to-major-fraud-seizure-strong">Tether Collaboration Leads to Major Fraud Seizure</h2> 
Victims of the scam were initially targeted through popup ads that warned their computers were compromised. These <a rel="nofollow" href="https://tether.to/en/tether-assists-us-government-in-seizure-of-illicit-funds-linked-to-tech-scam/">ads provided a fraudulent</a> customer support number, leading victims into the hands of scammers. These criminals then convinced the victims that their bank accounts were at risk, advising them to transfer funds into USDT to ‘safeguard’ their assets. Unfortunately, this action resulted in the victims losing control of their funds, with the scammers cutting off all communication after that. 
This scam predominantly preyed on the elderly, exploiting their trust and lack of familiarity with digital currencies. The methodology employed by the fraudsters was sophisticated, utilizing fear and urgency to manipulate their targets into complying with their instructions. The Attorney’s Office highlighted that this case is notable for the recovery of USDT from unhosted digital wallets, marking a precedent in the fight against <a href="https://coingape.com/elizabeth-warren-reignites-battle-against-cryptos-illicit-use/">cryptocurrency-related fraud</a>. 
<h2 id="strong-investigation-and-recovery-efforts-strong">Investigation and Recovery Efforts</h2> 
The investigation into the scam is still underway, with specific details on the recovery process remaining confidential. However, an affidavit filed in January shed light on the meticulous efforts by law enforcement to trace the stolen funds. Investigators tracked the USDT to five distinct wallets. They observed that the assets had been moved in small batches through various intermediary addresses, likely in an attempt to launder the stolen funds. 
Read Also: <a href="https://coingape.com/vaneck-bold-fee-cut-wins-119m-inflow-into-bitcoin-etf/">VanEck Bold Fee Cut Wins $119M Inflow into Bitcoin ETF</a> 
The post <a href="https://coingape.com/tether-helps-fbi-seize-1-4m-usdt-in-fraud-crackdown/">Tether Helps FBI Seize $1.4M USDT in Fraud Crackdown</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Tether Helps FBI Seize $1.4M USDT in Fraud Crackdown

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