The U.S. Department of Justice (DOJ) has announced the confiscation of $9 million in Tether (USDT) stablecoin associated with an entity involved in a fraudulent scheme known as the "pig butchering" scam.
This action follows an investigation by the U.S. Secret Service, which identified victim deposits that had been laundered across various cryptocurrencies, a method described by the DOJ as "chain hopping" in their recent statement released on Tuesday.
On Monday, Tether took action to freeze $225 million in its stablecoin, as part of a joint investigation involving the DOJ, the cryptocurrency exchange OKX, and Tether. The "pig butchering" scam, which typically disguises itself as traditional romance scams, entices victims and subsequently requests them to send cryptocurrencies abroad.
The Department of Justice (DOJ) emphasized that this seizure should act as a warning to cybercriminals. While the cryptocurrency realm may appear to offer an attractive avenue for laundering illicit proceeds, law enforcement is committed to enhancing its capabilities to track and recover such funds for the benefit of victims.
