US Authorities Recovered $1.4 Million in USDT From Crypto Scammers

The US Attorney’s Office in Chicago has seized around $1.4 million in Tether (USDT) from an unhosted crypto wallet. This action represents a significant stride in the United States’ efforts to combat financial fraud, particularly in the crypto sector.

The seizure underscores how blockchain technology can effectively facilitate tracing illicit funds.

How Bad Actors Stole Over $1.4 Million in Crypto

The seizure was the result of a collaborative effort of the US agencies. The Justice Department’s Computer Crime and Intellectual Property Section and the National Cryptocurrency Enforcement Team played crucial roles. Their combined efforts illustrate the importance of interagency cooperation in addressing modern financial crimes. The US government will eventually return the funds to the victims.

“The seizure marks one of the first times the United States has recovered USDT from an unhosted virtual currency wallet,” the US Department of Justice announced.

In the scheme, perpetrators tricked victims, mainly the elderly, with a fake computer popup. This popup falsely claimed the victim’s computer was compromised. Consequently, victims were misled into converting their savings into cryptocurrency to “protect” them from supposed hackers, only for it to be stolen.

Read more: 15 Most Common Crypto Scams To Look Out For

Moreover, this seizure is part of a larger effort by the US government to address crimes involving cryptocurrency. For example, in November 2023, a civil forfeiture action aimed to recover $54 million in crypto linked to a narcotics ring, further demonstrating the government’s comprehensive approach to combating criminal enterprises’ financial operations. These actions showcase a strategic effort to disrupt criminal networks by targeting their financial resources.

Moreover, the US government has substantial Bitcoin holdings, acquired from criminal activities and valued at approximately $12.4 billion. However, liquidating these assets is a complex process, entangled in legal and investigative procedures. Once these processes are concluded, the proceeds are allocated to compensate victims or finance further investigations.

US Government Bitcoin Balance.
US Government Bitcoin Balance. Source: Dune

Additionally, the government’s engagement in recovering cryptocurrency assets occurs against a backdrop of escalating cybercrime. For instance, February witnessed a surge in personal crypto scams, with 57,000 people falling victim to sophisticated phishing attempts.

Read more: Crypto Social Media Scams: How to Stay Safe

The Ethereum mainnet users accounted for 78% of the total exploits, with losses amounting to $36.2 million.

The post US Authorities Recovered $1.4 Million in USDT From Crypto Scammers appeared first on BeInCrypto.

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