Tether Assists US Government in Seizing $1.4 Million From Unhosted Wallet

Tether, the company behind the issuance of USDT, the largest stablecoin in the cryptocurrency market, announced that it helped the U.S. government to seize $1.4 million linked to an alleged fraud scheme. According to the Northern District of Illinois U.S. Attorney’s Office, the seizure marks one of the first times that the U.S. has recovered USDT from an unhosted wallet.

Tether Helps U.S. Government Recover $1.4 Million From an Unhosted Wallet Linked to a Fraud Scheme

Tether is extending its links and cooperation with institutions of the U.S. government. On March 12, the company announced that it facilitated a seizure of $1.4 million worth of USDT linked to an alleged tech support scam network. Tether voluntarily assisted the U.S. Attorney’s Office in Chicago in recovering these funds, stolen mostly from elderly people across the country.

The group behind the scheme made victims believe their funds in bank accounts were in danger after having their devices hacked. The scheme involved calls to a supposed tech support office, that instructed victims to convert their savings into USDT and transfer them to a third-party USDT address.

Tether’s intervention, qualified as pivotal by the company and acknowledged by the U.S. Attorney’s Office for its “assistance in effectuating the transfer of these assets,” marks one of the first times that the U.S. manages to recover USDT from an unhosted wallet. The recovered funds will be returned to the scam victims while the investigations are ongoing.

Paolo Ardoino, CEO of Tether, communicated that this joint action between the company and the U.S. government was a milestone in their efforts to “uphold integrity in this rapidly evolving industry.”

Ardoino stated:

Our commitment to safeguarding users and eradicating illicit activities remains unwavering. Together with law enforcement agencies across the globe, we will continue to lead the charge in fostering a safer and more secure environment.

In December, Tether confirmed its collaboration with the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the Secret Service. Ardoino revealed that the Secret Service was onboarded into the company’s platform and that the FBI was in the process.