The cryptocurrency company Tether seized $1.4 million on behalf of U.S. law enforcement investigating a tech support scam targeting elderly citizens, the company announced Tuesday - as it attempts to burnish its reputation amid accusations that its USDT coin is the currency of choice for online fraudsters.
According to a January affidavit requesting permission to seize the funds, the ongoing investigation involves a tech support scam in which cybercriminals pose as Microsoft or Apple employees after a popup on a victim's computer alerts them that their device is compromised and that they should call the companies for assistance.
In one case, a victim called a number purportedly for Apple support after a popup alert appeared on his computer.
The scammers told him to make wire transfers to two banks that had agreements with Crypto.com, where he set up accounts.
He was instructed to install the digital currency wallet Exodus and ended up transferring $3 million to $4 million to several accounts before following the same process for his wife's accounts as well, which he was told could be compromised.
Much of the funds were then transferred to USDT, a stablecoin that is pegged to the U.S. Dollar, and then transferred elsewhere by the cybercriminals.
According to the affidavit, the FBI identified wallets holding funds stolen from five victims, which Tether froze at their request.
Tether and law enforcement have partnered in the past to seize illicit funds.
In November, the Justice Department announced the seizure of $9 million in USDT stolen from more than 70 victims in so-called pig-butchering scams.
This week, Tether announced that the circulation of USDT had passed $100 billion for the first time.
Has worked as a journalist around the world, including in Lebanon and in Cambodia, where he was Deputy Managing Editor of The Phnom Penh Post.
He is also a radio and podcast producer for outlets like Snap Judgment.
This Cyber News was published on therecord.media. Publication date: Wed, 13 Mar 2024 01:55:36 +0000