The post Tether Recognized by DoJ for Facilitating Seizure of $225M Linked to Fraud Operations appeared first on Coinpedia Fintech News
Tether, a top-tier issuer of stablecoins on different blockchains, has been recognized by the United States Department of Justice (DoJ) for facilitating the seizure of around $225 million linked to an extensive fraud scheme. The stablecoins issuer announced that it worked with the DoJ to freeze the funds in USDT.
According to the DoJ, the frozen funds were stolen from more than 400 suspected victims. The DoJ filed a civil forfeiture complaint on Wednesday in the U.S. District Court for the District of Columbia.
“This seizure of $225.3 million in funds linked to cryptocurrency investment scams marks the largest cryptocurrency seizure in U.S. Secret Service (USSS) history. These scams prey on trust, often resulting in extreme financial hardship for the victims,” Special Agent in Charge Shawn Bradstreet of the USSS San Francisco Field Office, noted
Tether and the Stablecoins Legislation
As the largest stablecoins issuer, especially U.S. dollar dominated digital currency, Tether has heavily been scrutinized over the years. Currently, Tether is headquartered in El Salvador but remains a major buyer of the U.S. Treasury securities.
With the imminent implementation of the GENIUS Act, especially after a monumental bipartisan support in the U.S. Senate earlier this week, Tether is keen to remain heavily compliant. Furthermore, the GENIUS Act will enforce all stablecoins issuers focused on the U.S dollar to implant a feature that enables them to freeze funds.
“We are setting the standard for compliance in digital assets and leading efforts to ensure stablecoins are not misused by bad actors,” Paolo Ardoino, CEO of Tether, noted.