In a case related to USDT, seven were arrested for kidnapping a Hong Kong investor in a peer-to-peer cryptocurrency transaction. The kidnappers demanded a ransom of $30 million in Tether’s stablecoin. And in the end, the victim escaped and seven were arrested by the police.
The Hong Kong police announced that the victim is a 39-year-old man, a full-time crypto investor trading Tether’s stablecoin USDT. The kidnappers pretended to be buyers, offering to buy HK$4 million in USDT.
They lured the victim to complete the transaction face-to-face in an industrial building unit in Kowloon Bay. The gang then beat the victim severely and forced the victim to surrender the passwords for his online banking and crypto trading accounts. Additionally, they called the victim’s family demanding a $30 million ransom.
The victim’s family called the police. Seven days after being kidnapped, the victim climbed out of a narrow window of the house to escape. In the end, the police arrested 6 men and 1 woman. However, the kidnappers had transferred away $20 million from the victim’s crypto trading account.
The police said scammers could use different excuses to ask for face-to-face crypto transactions. It reminds investors to trade crypto on safe, secure, trustworthy platforms. And they should avoid face-to-face trading with strangers.
Buy & Sell USDT on Safe, Trustworthy Crypto Platforms
You may wonder, what is USDT, Tether’s stablecoin? First issued in 2014, the U.S. dollar stablecoin is a popular cryptocurrency for trading. Tether claims that every 1 USDT has equivalent assets in reserves to back the value, pegging USDT to the U.S. dollar.
Among dozens of stablecoins such as USDC and DAI, Tether remains the top stablecoin with a current market value of $75 billion. For now, USDT is the fourth largest cryptocurrency by market cap.
Different from bitcoin (BTC) and ether (ETH), stablecoins are designed to be stable in value against crypto market fluctuations.
Is USDT untraceable? No. In fact, the stablecoin issuer Tether can already track the USDT capital flow, and even “lock” the respective USDT wallet addresses. Previously, in the PolyNetwork hack, Tether locked the hacker’s wallet address, freezing the 33 million USDT stolen. Also, it called major exchanges such as Binance to reject crypto transfer from those wallet addresses.
However, stablecoins like USDT become the target of the US government’s tightened crypto regulation. The U.S. Federal Reserve and the Treasury Department are regarding stablecoins as bank deposits. They plan to require stablecoin issuers like Tether and Circle to be under national bank’s regulations.
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