In a major crackdown on cybercriminals, the Justice Department has successfully seized almost $9 million worth of Tether, a popular cryptocurrency pegged to the U.S. dollar. The seized funds were traced to cryptocurrency addresses allegedly associated with an organization involved in romance scams and cryptocurrency confidence scams, commonly known as "pig butchering."

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department's Criminal Division expressed the significance of this seizure in disrupting the financial infrastructure of a well-organized network of scammers. These fraudulent actors targeted and exploited over 70 victims across the United States, deceiving them through false investment claims on their websites.

Court documents revealed that the criminals manipulated victims into making cryptocurrency deposits by fraudulently representing the investments as being with reputable firms and cryptocurrency exchanges. In reality, these entities did not exist, and the funds were swiftly laundered through multiple cryptocurrency addresses using a technique known as "chain hopping." This money laundering method involved exchanging the funds for various cryptocurrencies, complicating the tracing process.

The seized funds were directly linked to numerous victim reports made through the FBI's Internet Crime Complaint Center (IC3) and the Federal Trade Commission's (FTC) Consumer Sentinel Network. The recovery of these assets is expected to provide some closure and a sense of justice to those affected by these scams.

U.S. Attorney Ismail J. Ramsey for the Northern District of California emphasized the collaborative efforts between the Justice Department and the U.S. Secret Service (USSS) in securing this seizure. Ramsey stated the commitment to using all available tools to bring justice to victims of frauds and scams, regardless of the perpetrators' location.

Special Agent in Charge Shawn Bradstreet of the USSS San Francisco Field Office applauded the seizure, affirming the Secret Service's dedication to combatting cyber-enabled financial fraud and safeguarding the financial security of U.S. citizens.

The investigation into this case was conducted by the USSS San Francisco Field Office. Trial Attorney Georgiana MacDonald of the Criminal Division's Computer Crime and Intellectual Property Section, National Cryptocurrency Enforcement Team, and Assistant U.S. Attorneys Chris Kaltsas and Galen Phillips for the Northern District of California will handle the case, including the seizure and forfeiture actions.

The Justice Department encouraged victims of cryptocurrency scams or other internet-related scams to report incidents to the IC3 at ic3.gov and to the FTC at www.reportfraud.ftc.gov to help combat cybercriminal activities.

As the news unfolds, it serves as a reminder to cybercriminals that law enforcement agencies are diligently developing expertise in tracking illicit funds within the cryptocurrency ecosystem.