The U.S. Attorney’s Office in Chicago has seized approximately $1.4 million in Tether (USDT) linked to an alleged tech support scam that primarily targeted elderly victims across the United States.
The U.S. Attorney’s Office in Chicago has announced the seizure of around $1.4 million in Tether (USDT), a cryptocurrency pegged to the U.S. dollar, in connection with an alleged tech support scam that primarily victimized elderly individuals throughout the United States. The seizure, one of the first instances of the U.S. government recovering USDT from an unhosted virtual currency wallet, was conducted through a court-authorized warrant.
Acting U.S. Attorney Morris Pasqual and FBI Special Agent-in-Charge Robert W. “Wes” Wheeler, Jr. revealed that the alleged fraud scheme involved a computer popup indicating that the victim’s computer had been compromised. The popup directed the victim to contact Microsoft or Apple, depending on their operating system, at a provided telephone number. Once on the phone, scammers posing as tech support personnel informed the victim that their bank account had also been compromised.
The scammers then transferred the call to others pretending to be employees of the victim’s bank’s fraud department. They persuaded the victims to convert money from their traditional bank accounts into cryptocurrency to keep it “safe” from hackers. The funds were then moved into unhosted virtual currency wallets controlled by the scammers.
The FBI’s most recent Internet Crime Report estimated that tech support scams caused losses exceeding $924 million in 2023. The U.S. Attorney’s Office recognized Tether for its assistance in facilitating the transfer of the seized assets, which will be returned to the victims of the fraud scheme.
The seizure was a collaborative effort involving the U.S. Attorney’s Office in Chicago, the FBI’s Chicago Field Office, and the Justice Department’s Computer Crime and Intellectual Property Section and National Cryptocurrency Enforcement Team. Assistant U.S. Attorney Steven J. Dollear is representing the government in this case.
As authorities continue to investigate the alleged fraud scheme, this seizure serves as a warning to scammers targeting vulnerable populations and demonstrates the U.S. government’s commitment to combating cryptocurrency-related crimes. It also highlights the importance of educating the public, especially the elderly, about potential scams and the need for caution when dealing with unsolicited tech support communications.
The increasing prevalence of cryptocurrency scams targeting the elderly is a troubling trend. Scammers often take advantage of older individuals’ lack of familiarity with technology and cryptocurrency to manipulate them into transferring funds to fraudulent wallets. Educating the elderly about the risks associated with unsolicited tech support calls and the importance of verifying the legitimacy of any financial transaction is crucial in preventing such scams.
Furthermore, this case underscores the significance of collaboration between law enforcement agencies, financial institutions, and cryptocurrency platforms in combating fraud. Tether’s assistance in the seizure of the fraudulent funds emphasizes the importance of cooperation between the public and private sectors in identifying and preventing financial crimes.
As the use of cryptocurrency continues to expand, regulators and law enforcement agencies must adapt their strategies to effectively investigate and prosecute crypto-related crimes. The successful seizure of the Tether funds in this case serves as an example of the U.S. government’s growing ability to trace and recover illicit cryptocurrency proceeds.
Going forward, it is essential for authorities to maintain their efforts in raising awareness about cryptocurrency scams, particularly among vulnerable populations, and to collaborate closely with the crypto industry to develop robust security measures and regulations to prevent fraudulent activities. By taking a proactive approach to combating cryptocurrency fraud, we can establish a safer financial ecosystem for all users, regardless of their age or technological proficiency.
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