DOJ Seizes $225 Million USDT From International Fraud Network

The US Department of Justice (DOJ) has initiated legal proceedings to seize approximately $225 million in USDT, a stablecoin pegged to the US dollar, from various digital wallets linked to an international criminal network. This network is accused of defrauding both US and foreign victims on a large scale.

The DOJ's civil forfeiture complaint, filed on June 18, alleges that the criminal operation involved overseas actors and their associates, who stole funds from over 430 suspected victims. The illicit funds were then laundered through a complex network of cryptocurrency wallets and blockchain transactions, designed to conceal the origin of the funds and evade detection.

The investigation was launched by the US Secret Service (USSS) and the Federal Bureau of Investigation (FBI) after reports from OKX and Tether flagged a series of suspicious transactions. These transactions were believed to be connected to significant crypto fraud activities. The agencies utilized blockchain analytics and other digital forensic tools to track the stolen assets across multiple addresses, ultimately leading to the identification and freezing of the digital assets.

The seized assets are now under the custody of the US Marshals Service. The DOJ has stated that one of the primary goals of the forfeiture is to return the funds to the victims who were defrauded in this elaborate scheme. This action underscores the DOJ's commitment to combating financial crimes and protecting victims of fraud, particularly in the rapidly evolving landscape of digital currencies.