DOJ Recovers $5 Million in Crypto Funds with Help from Tether

The U.S. Department of Justice (DOJ) has revealed that Tether, the issuer of the USDT stablecoin, was instrumental in recovering funds linked to a major cryptocurrency scam.

Nearly $5 million worth of USDT was recently confiscated, with the funds traced back to wallets used in a scam known as “pig butchering.”

This scam involves fraudsters forming fake romantic relationships with victims to convince them to invest in bogus cryptocurrency ventures. The perpetrators tried to obscure the origins of the stolen funds by funneling them through numerous wallets. However, the FBI’s investigative team successfully tracked the transactions across these wallets.

Michael Easley, a U.S. Attorney, stressed the urgency of the situation, noting that funds are often quickly transferred to overseas cryptocurrency accounts, making recovery challenging. “We are determined to reclaim every dollar from these criminals, regardless of their location, and return it to the victims,” Easley said.

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The DOJ acknowledged Tether’s significant role in the operation, praising the company for its cooperation. Tether’s CEO, Paolo Ardoino, responded by condemning the misuse of USDT and reaffirming the company’s commitment to supporting law enforcement in fighting cryptocurrency-related fraud.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.