A Sting Operation by US Justice Department Nabs Crypto Scammers
It’s no gossip that the United States Department of Justice has successfully confiscated $9 million tether, one of the most popular cryptocurrencies pegged to the U.S. dollar. This substantial amount was traced back to an unscrupulous group involved in widespread investment scams, popularly known to the crypto world as the “pig butchering” scams.
The swindling group deceived over 70 unsuspecting victims into investing through their counterfeit investment projects and cryptocurrency scams. The victims were fooled through crafted deceptive websites into believing that they were investing into a profitable venture.
As head of the Justice Department’s Criminal Division, Nicole M. Argentieri, Acting Assistant Attorney General, pointed out how these villains targeted everyday investors with the sole intention of stealing cryptocurrency and giving nothing in return. The hope is that the recovery of the assets will provide some justice and closure to the more than 70 victims affected by these rampant scams.
Court filings show how these criminals fooled their victims into depositing cryptocurrency into non-existent firms. These transactions were crafted to look like genuine investments into credible firms and cryptocurrency exchanges.
The Secret Service Agents from the United States verified the path of these deposits and noted that the funds were quickly ‘chain hopped’. That is, they were laundered via numerous cryptocurrency addresses and exchanged into various cryptocurrencies. The scammers used this technique to introduce a layer of funds obtained through illegal activities into new cryptocurrency ecosystems, all with the aim to obscure the nature, source, control, and ownership of those funds.
Just recently, Tether makes headlines again as voluntarily freezing $225 million in tether in relation to the DOJ’s investigation into pig butchering scams, making this the largest freeze of tether in history.
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The recent rise in “pig butchering” scams cannot be overemphasized enough, with law enforcement agencies globally issuing warnings. In fact, US authorities have expressed concern over the fast popularity of these scams. Furthermore, a previous crackdown by the DOJ saw a whopping $112 million worth of cryptocurrency seized in relation to these scams. The Internal Revenue Service (IRS) warns that currently, US taxpayers are in the high-risk demographic for these scams.
In all, the US Justice Department is stepping up efforts to combat these ‘pig butchering’ cryptocurrency scams, as seen from the recent seizure of tether linked to these illegal activities.
Frequently asked Questions
1. What is Tether and why is it being confiscated by the US?
Tether is a type of cryptocurrency called a stablecoin that is pegged to the value of the US dollar. The US is confiscating $9 million worth of Tether due to its possible involvement in cryptocurrency scams within the pig-butchering industry.
2. How is Tether potentially linked to cryptocurrency scams in the pig-butchering industry?
Tether has been allegedly used as a medium for illegal transactions and fraudulent activities in the pig-butchering industry. The confiscated $9 million suggests a possible connection between Tether and these scams.
3. Why is the pig-butchering industry specifically targeted in this investigation?
The pig-butchering industry has been identified as a sector where cryptocurrencies are potentially being misused for fraudulent purposes. This could include money laundering, tax evasion, or other illegal activities.
4. How does the US government confiscate Tether?
The US government confiscates Tether by identifying suspicious transactions and freezing the associated accounts. This process involves working closely with cryptocurrency exchanges and following legal procedures to ensure the funds are seized appropriately.
5. What are the potential consequences for individuals involved in cryptocurrency scams within the pig-butchering industry?
Individuals involved in cryptocurrency scams within the pig-butchering industry may face both criminal charges and financial penalties. Depending on the severity of their involvement, they could be subject to substantial fines, imprisonment, or both.
6. What steps are being taken to prevent cryptocurrency scams in other industries?
To combat cryptocurrency scams in various industries, governments are increasing their regulatory efforts and implementing stricter guidelines. Additionally, collaborations between law enforcement agencies and cryptocurrency exchanges are being established to enhance monitoring and reporting of suspicious activities.
7. Can the confiscated Tether be returned to its rightful owners?
The confiscated Tether can potentially be returned to its rightful owners if it can be proven that their funds were not obtained through illegal means. However, this process requires thorough investigation and the cooperation of the individuals involved.