Tether Worth $9M Tied to 'Pig Butchering' Scams Is Seized by U.S. DOJ

CoinDeskPolicyPublished on 2023-11-20Last updated on 2023-11-21

Abstract

Tether said Monday it froze $225 million of its USDT stablecoin in light of DOJ investigations.

The U.S. Department of Justice (DOJ) said it seized $9 million worth of the tether (USDT) stablecoin linked to an organization that exploited victims through a "pig butchering" scam.

The seizure comes after agents and analysts from the U.S. Secret Service traced victim deposits that were laundered through several cryptocurrencies, a technique the DOJ described as "chain hopping" in its release Tuesday.

Tether froze $225 million worth of its stablecoin on Monday following a collaborative investigation between the DOJ, crypto exchange OKX and Tether itself. Pig butchering is a scam that involves luring victims in with traditional romance scams. The victims are often requested to send cryptocurrencies overseas.

"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,” the DOJ said.

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Edited by Sheldon Reback.

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