The United States Attorney’s Office in Chicago, Illinois, recently announced the seizure of approximately $1.4 million in Tether (USDT) on March 12. The funds were believed to be proceeds from a customer support scam. Recovery efforts were spearheaded by the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI), with Tether assisting in the operation.

Tether expressed pride in collaborating with the U.S. government to combat financial fraud within the cryptocurrency industry. The seizure of $1.4 million worth of Tether (USDT) signifies a significant milestone in ongoing efforts to uphold integrity in the industry. The commitment to safeguarding users and eliminating illicit activities remains steadfast. Together with global law enforcement agencies, Tether will continue to lead the charge in creating a safer environment.

The funds were reportedly stolen through a customer support scam primarily targeting the elderly. Victims encountered a pop-up ad on their computers claiming their system was compromised and providing a fake customer support number. After contacting the number, victims were told their bank accounts were affected and transferred to scammers posing as support agents. Victims were instructed to transfer their bank funds to USDT for safekeeping, resulting in loss of control over their tokens.

This seizure represents one of the first instances in the U.S. recovering USDT from an unhosted digital currency wallet. An ongoing investigation is in progress to determine how the funds were recovered. An affidavit filed on Jan. 24 suggests that law enforcement traced the funds to five distinct wallets, which were likely used for laundering the proceeds of a wire fraud scheme involving financial fraud.

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