Indian Scammers Use Tether USDT to Launder Funds

• Rajasthan scammers use USDT to transfer $115K overseas.
• Tether collaborates with other companies to track illegal activities around the world.

In Rajasthan, India, cybercriminals were caught using Tether (USDT) for the laundering of illegal funds. It has become more evident that stablecoins are becoming increasingly popular in digital scams. Local authorities apprehended some money mules involved in converting more than INR 1 crore (around $115,546) into USDT before sending it abroad to cybercriminals in Dubai and France.

Superintendent of Police Arshad Ali stated that the scammers earned money through “digital arrest” scams, in which they tricked unsuspecting people into sending money. The local mules are said to be responsible for the conversion of scam money into USDT and transferring them to international crypto exchanges.

Indian Scammers Use USDT For Laundering

In the latest breakthrough, cyber police at Hanumangarh arrested three active participants, Nitesh, Divanshu, and Ankush, who engaged in this money laundering process. The police arrested them with some mobile phones and SIM cards. As per the authority, this trio helped launder almost ₹1 crore into Tether (USDT), making the stolen money nearly impossible to trace.

Police have confiscated mobile phones and SIM cards during arrests. In fact, the gangsters have been using the resources available in the locality like ATM cards, mobile phones, and bank accounts to further the scheme. Authorities suspect that the masterminds of this cross-border operation are based in Dubai and France.

The biggest stablecoin, Tether has emerged as one of the favourite coins of the criminals because of its liquidity and stability along with pseudo-anonymity. The stablecoin will face higher-level scrutiny and regulation when users use it to launder money. Tether stepped up its mechanism against money laundering recently.

In May 2024, Tether announced a partnership with Chainalysis to monitor secondary market activities and detect suspicious transactions. Tether also partnered with TRM Labs and the blockchain network Tron to establish the T3 Financial Crime Unit, which monitors illegal activities involving USDT on the Tron network.

Such increased utilization of Tether for cybercrime becomes pretty difficult for law enforcement agencies who look forward to cracking down on cryptocurrency fraud. Moreover, the case also brings about tighter regulatory and supervision standards in the crypt space that may cut down on malpractices.