Fed Seizes Tether Worth $9 mn
Federal investigators have confiscated $9 million worth of crypto connected to a Silicon Valley-based cyber scam group that had taken advantage of over 70 victims. The intercepted funds were in the form of stablecoin Tether, pegged to the U.S. dollar. The funds were traced back to addresses linked to an entity engaged in romance and confidence scams involving cryptocurrencies, known as “pig butchering.”
The cyber fraud group tricked victims into depositing cryptocurrency by pretending to be trusted companies, only for them to discover these businesses and bitcoin exchanges were fictitious online marketplaces. Acting Assistant Attorney General Nicole M. Argentieri emphasized that these criminals were not generating profits for investors but stealing their money, leaving victims with substantial losses. Tether Limited Inc. participated in the seizure of the cryptocurrencies from the cyber fraud gang.
(With inputs from Shikha Singh)
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