“Tether supports law enforcement in fighting financial fraud: How cryptocurrency defends victims of impersonation of large companies”
Tether Supports Law Enforcement in Fighting Financial Fraud
The cryptocurrency company Tether has engaged in supporting law enforcement agencies in the fight against financial crime. Recently, the company has secured $1.4 million for American law enforcement agencies investigating scams primarily targeting elderly individuals.
Impersonating Microsoft and Apple Employees
The scam that the victims fell for involved impersonating employees of renowned companies such as Microsoft and Apple. Scammers would contact elderly individuals, informing them of alleged threats to their assets and suggesting that their social security number had been compromised. Subsequently, they would persuade victims to transfer funds to a fake “government treasury account.”
Tether’s Response and Asset Safeguarding
After the fraudsters transferred the secured funds to Tether, the company took swift action. The Tether team managed to “burn” the funds, then issued an equivalent amount of USDT tokens, a stable cryptocurrency pegged to the US dollar. These were then transferred to a government-controlled account, supporting law enforcement efforts.
Tether’s Collaboration with Law Enforcement
Tether is rightfully referred to as an invaluable partner for law enforcement agencies. The actions taken by the company allow for a rapid response to criminal activities, surpassing the capabilities of traditional banking systems. Tether is setting new standards for controlling and preventing financial fraud using cryptocurrencies.
USDT in Light of a UN Report
A United Nations nationwide report on transnational crime in Southeast Asia has highlighted the growing significance of the USDT cryptocurrency in cybercriminal operations and money laundering in the region. The circulation of this stable coin has exceeded $100 billion, making it one of the most widely used means of payment in this area.
It is worth emphasizing that cooperation between cryptocurrency companies and law enforcement agencies is becoming increasingly crucial in combating modern forms of financial crime, and Tether’s response to this particular scam illustrates that the cryptocurrency market is also evolving towards combating abuses.
