The Department of Justice (DOJ) in the United States has confiscated approximately $9 million worth of USDT (Tether) as part of an operation targeting a criminal group involved in romance scams. This follows Tether’s action to freeze $225 million worth of USDT held in external self-custodied wallets associated with the scam.
Romance scams entail fraudsters forming relationships with unsuspecting individuals online, often convincing them to invest in legitimate businesses before defrauding them. The seized funds were allegedly linked to an organization responsible for such scams.
The US Secret Service, in collaboration with the DOJ, traced the laundered cryptocurrency through various wallet addresses and exchanges using a technique known as "chain hopping." The DOJ acknowledged Tether's assistance in facilitating the transfer of the confiscated assets.
Nicole M. Argentieri, Acting Assistant Attorney General, said:
“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.”
This is not the first instance of US authorities seizing illicit funds associated with cryptocurrency-related crimes. In 2020, the US government took control of around 70,000 Bitcoin linked to the Silk Road. The US government reportedly holds over $5 billion in seized cryptocurrencies.
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