US-based cryptocurrency exchange Coinbase has revealed that it assisted the U.S. Secret Service (USSS) in recovering roughly $225 million worth of Tether (USDT) stolen via the so-called “pig butchering” crypto scams.
Scammers typically lure potential victims by pretending that they are willing to start a romantic or business relationship. After some time, they eventually convince their potential victims to invest in fraudulent crypto projects. Expectedly, bad actors end up cutting contact as soon as enough money gets squeezed out of the victim.
In late 2023, the stablecoin giant froze a total of 39 wallets connected to such scams.
Coinbase joined forces with the USSS to track down stolen crypto on-chain and identify the exchange’s customers who were affected by such fraudulent schemes. They managed to find a total of 130 users who lost more than $2 million.
Overall, the USSS confiscated a total of $225 million, and Tether burned the tokens on-chain. The same amount of stablecoins was then reissued in order to be distributed to potential victims.
The Federal Bureau of Investigation (FBI) has now initiated a restitution process. Victims have to prove that they got scammed by sharing their transaction history on Coinbase or another exchange.
Pig butchering scams are treated as a top crypto crime priority by the FBI, the USSS, and other agencies.