Tether Credited for Role in US Crackdown on $52M Crypto Scam
Tether, the stablecoin issuer, has been credited by the US Department of Justice (DOJ) for its assistance in cracking down on a $52 million crypto scam. The crackdown targeted the Xinbi Guarantee marketplace, which authorities say is a Chinese-language platform that connected scam operators with vendors offering money laundering services and fraudulent investment websites.
The DOJ's Scam Center Strike Force moved against the network, tracing funds belonging to US victims and seizing two cryptocurrency wallets used by Xinbi to collect over $12 million in vendor payments. The coordinated actions resulted in more than $52 million in cryptocurrency being restrained.
Tether's CEO, Paolo Ardoino, stated that 'By now, criminal organizations should understand that using digital assets does not put them beyond the reach of the law.' Tether has collaborated with over 340 law enforcement agencies across 67 countries on over 2,800 cases, helping freeze more than $5 billion in assets linked to illicit activity.