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US Justice Dept. Seizes 9M USDT Linked to Romance Scams

by BSCN

November 21, 2023

chain

Employing blockchain analysis, the DOJ traced victim deposits laundered through various cryptocurrencies using a "chain hopping" technique.

The U.S. Department of Justice (DOJ) has seized nearly $9 million worth of Tether (USDT) associated with an international criminal network orchestrating romance scams and fraudulent cryptocurrency investment schemes. Termed "Pig Butchering," these scams manipulate victims into making fictitious crypto investments or directly pilfering their funds.

The DOJ's operation, stemming from victim complaints reported to the FBI’s IC3 cyber tip line and the Federal Trade Commission, revealed a sophisticated operation. Agents and analysts from the U.S. Secret Service employed blockchain analysis tools to trace victim deposits laundered through various cryptocurrencies. The criminals executed a chain-hopping technique, rapidly moving funds through multiple wallets and currencies to obfuscate the money trail.

Justice for Over 70 Victims

The seized assets, scattered across numerous crypto wallets, are set to be returned to over 70 identified victims nationwide. The criminal actors teamed up to target victims, persuading them to deposit cryptocurrencies under false pretenses of legitimate investments with reputed firms and cryptocurrency exchanges. In reality, these entities were fictitious trading platforms.

According to Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department's Criminal Division, these criminal actors are stealing cryptocurrencies from victims and leaving them with nothing. 

Disclaimer

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