US Launches Forfeiture Complaint Against $200,000 Worth of Tether on Binance Linked to Pig-Butchering Scams

The US government has taken action against a significant amount of tether (USDT) held on Binance, worth almost $200,000, in connection to pig-butchering scams that resulted in the theft of over $1 million. According to court documents filed in the District Court of Columbia, the USDT is believed to be the proceeds of wire fraud, money laundering, and related conspiracies.

The case involves an anonymous victim who fell victim to two separate scams involving individuals they met on Facebook Dating. The first scammer, posing as an engineer and diamond mine owner named Eva Markus, convinced the victim to send over $400,000 under false pretenses. The victim then entered into a second fraudulent relationship with someone claiming to be Lisa Warren, who persuaded them to invest in crypto, resulting in the loss of roughly $600,000.

Authorities were able to track down the illicit funds by following the bitcoin transactions to Warren’s wallet address. This led them to a Binance account held by Izuchukwu Henry Okolo, who had converted the bitcoin to 196,721 USDT. Binance froze the funds and alerted the FBI, who subsequently seized them.

This incident has put Binance under increased scrutiny, as US regulators have appointed legal firms to monitor the exchange’s adherence to money-laundering and sanction laws following a $4.3 billion settlement with the US government. The documents also suggest that the criminals involved in the scams may themselves be victims, and that Okolo’s claims about the nature of the seized USDT were found to be false.

The case serves as a reminder of the risks associated with online scams and the importance of due diligence when engaging in financial transactions, especially in the crypto space. Authorities continue to investigate the matter to ensure justice is served and to prevent similar incidents in the future.