Tether Partners With FBI To Reclaim $1.4 Million From Scam Targeting Elderly Individuals

A Hacker and Tether Logo

According to a statement released on March 12, stablecoin issuer Tether worked with the US Department of Justice and the Federal Bureau of Investigation (FBI) to seize $1.4 million USDT from a tech support fraud network.

Fraudulent plan targeting vulnerable people

The fraudulent plan targeted vulnerable elderly people with false pop-up ads. These deceptive advertisements erroneously alerted consumers to infected devices, prompting them to seek help from alleged technical support.

When victims called the number provided, they were duped into believing their accounts had been hacked. Victims were then routed to persons acting as bank personnel, who forced them into changing their funds into cryptocurrency and sending them to hacker-controlled wallets.

Tether said the reclaimed funds would be returned to victims of the fraud.

Paolo Ardoino, Tether’s CEO, said:

“The seizure of $1.4 million worth of Tether (USDT) marks a significant milestone in our ongoing efforts to uphold integrity in this rapidly evolving industry.”

Notably, this move is consistent with Tether’s continuing efforts against malevolent players’ illegitimate usage of cryptocurrency. Ardoino emphasized that the company is still dedicated to “safeguarding users and eradicating illicit activities.”

USDT expands to Celo

Tether’s USDT has also been incorporated into Celo, a mobile-centric layer-1 platform.
The connection offers major benefits for USDT, including cheap transaction fees. It also broadens the use of stable assets in Celo, including remittances, savings, loans, peer-to-peer (P2P) transactions, and cross-border payments.

Ardoino referred to Celo as an “important new transport layer” due to its cheap transaction fees and emphasis on emerging markets. Celo is in the process of upgrading to a layer 2 network based on Ethereum.

Celo’s core contributor development team at cLabs will propose USDT as a gas currency for the ecosystem. The program intends to speed up transactions and increase efficiency in decentralized apps (dApps) that specialize in payments, loans, and other services.
Interestingly, USDT’s main stablecoin rival, Cicle’s USDC, expanded similarly to Celo in January.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.