U.S. Authorities Seize Nearly $8.5 Million in Tether, Cryptocurrency Fraud Victims See Possibility of Recovery

On December 18, the U.S. Department of Justice have announced that authorities seized nearly $8.5 million of Tether from a cryptocurrency address allegedly associated with investment fraud. This seizure may help to recover funds for victims of investment fraud.

The funds reportedly originated from victims of a cryptocurrency investment scam, also known as "pig butchering scheme." The FBI stated one victim lost hundreds of thousands of dollars in an instant after investing the child's college savings and the spouse's retirement funds.

Court documents revealed that criminals approached victims by establishing business or romantic relationships to gain trust. They sent seemingly harmless yet deceptive messages or unsolicited communications to victims' social media accounts or online dating profiles.

Upon receiving a response, the scammers claimed to help victims earn substantial profits through cryptocurrency trading, then manipulated them into using fake cryptocurrency trading platforms that appeared legitimate. These platforms displayed fabricated investment portfolios, using claims of unusually "large profits" to lure victims into investing substantial sums.

Since 2024, the FBI and the U.S. Attorney's Office for the Eastern District of North Carolina have recovered over $15 million for victims of cryptocurrency investment fraud through joint operations.

In other cases, authorities have recovered $7.59 million on behalf of multiple victims. Several male victims, aged between 50 and 67, mistakenly believed they were in romantic relationships with the scammers and communicated with them via WhatsApp and Telegram.

BrokersView reminds you

Pig butchering scam often lures victims into transferring money or participating in fraudulent financial investments while gaining their trust, causing victims to suffer not only immense psychological distress but also severe financial losses.

If you would like to know the regulatory status and licence details of a financial service provider, you can search for their names at BrokersView for more information.