Tether, a leading stablecoin issuer, recently partnered with the US Department of Justice and the FBI to seize $1.4 million USDT linked to a tech support scam network. This fraudulent scheme specifically targeted vulnerable elderly individuals through deceptive pop-up advertisements. Victims were led to believe that their devices had been compromised and sought help from supposed tech support professionals. However, upon reaching out, they fell into the hands of scammers who claimed their accounts were in danger. These victims were then coerced into converting their funds into cryptocurrencies and transferring them to wallets controlled by hackers. Tether announced that the recovered funds would be returned to the victims of the fraud.
Paolo Ardoino, the CEO of Tether, emphasized the importance of this seizure, calling it a significant milestone in the company’s mission to maintain integrity within the industry. This operation is part of Tether’s ongoing efforts to combat the illicit use of cryptocurrencies by malicious actors. Ardoino reiterated the firm’s dedication to safeguarding users and eradicating illegal activities within the digital asset space.
In addition to its collaboration with authorities, Tether’s USDT has partnered with the mobile-focused layer-1 platform, Celo. This integration offers several advantages for USDT, including low transaction fees. It also expands the use cases for stable assets on Celo, ranging from remittances and savings to peer-to-peer transactions and cross-border payments. Ardoino praised Celo as an essential new layer due to its cost-effectiveness and focus on emerging markets. Celo is currently transitioning to a layer 2 network on Ethereum, with plans to use USDT as a gas currency within its ecosystem. This initiative aims to streamline transactions and improve efficiency across decentralized applications specializing in payments, lending, and other financial services.
Interestingly, Tether’s USDT faces competition from Circle-issued USDC, which also expanded its presence on Celo in January. This move showcases the growing significance of stablecoins in the digital asset ecosystem, as issuers strive to enhance accessibility and utility for their respective tokens. As the battle between stablecoin rivals continues, Tether remains focused on maintaining its position as a trusted and reliable provider of stable digital assets.