The FBI recently announced the confiscation of over $6 million in cryptocurrency related to a fraudulent scheme aimed at American citizens. The operation, revealed on September 26, detailed the tactics employed by fraudsters in Southeast Asia, who deceived victims by presenting fake investment opportunities. This led to significant financial losses for individuals seeking returns.
Chad Yarbrough, Assistant Director of the FBI's Criminal Investigative Division, highlighted the severe effects of these scams on victims across the U.S. He noted alarming trends where individuals, driven by the prospect of high returns, engaged in risky financial behaviours, including taking out additional mortgages. Scammers typically begin with small withdrawals to establish trust, only to ultimately lock victims out and exhaust their investments.
Tether helps DOJ seize $6M in crypto scam
Tether, a prominent player in the digital asset sector, announced its role in assisting the U.S. Department of Justice (DOJ) with the seizure of these assets. The DOJ successfully retrieved the funds with Tether's support, marking a significant achievement against the backdrop of deceitful crypto operations.
In a recent post on X Space by Wu Blockchain, Tether confirmed that it helped the DOJ reclaim over $6 million linked to a confidence scheme based in Southeast Asia. The fraudsters had misled investors by mimicking legitimate platforms, thereby robbing victims of their digital assets.
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Tether assists global law enforcement in seizing over $1.8 billion in illegal crypto proceeds
Tether has demonstrated a commitment to collaboration with law enforcement, aiding over 180 enforcement agencies across 45 jurisdictions in various operations. Notable recoveries in the past year include nearly $9 million and $5 million from similar scams, as well as $1.4 million from a tech support fraud network.
Tether's actions reflect a strong stance against illicit activities within the cryptocurrency space. CEO Paolo Ardoino reiterated the company's dedication to preventing misuse of digital currencies, pledging cooperation with authorities to thwart fraudulent actors and support victims.
In conclusion, while the confiscation of these funds marks a notable effort against fraud, the persistent prevalence of such scams indicates ongoing challenges in safeguarding investors.
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Hui Xin
Coindesk
Cointelegraph
Bitcoinist