Author: Bitrace

Original link:

https://mp.weixin.qq.com/s/KRwCWnJUTZ2_P6SmCR_8Dg

In recent years, with the gradual upgrading of the US government departments’ regulatory measures for cryptocurrencies, various industries have emerged endlessly with sanctions while law enforcement activities for platform personal accounts are also growing rapidly.

In December 2022, Bitrace team received a report from the client, saying that its account on a head exchange was frozen indefinitely, not only the account could not be logged in, but also the cryptocurrency worth $ 50,000 in the platform could not be recovered. Preliminary communication learned that the application of frozen law enforcement agencies is Regional Enforcement Allied Computer Team (REACT), which is a diversified partnership of local, state, and federal agencies formed in cooperation with private industry to combat the escalating problem of high technology crime and conduct multi-jurisdictional investigations.

Bitrace team immediately traced the funding for the client’s frozen account. After investigation, the Ethereum address was charged multiple black USDTs within the three months before theincident. According to our analysis platform address label data, the largest one came from an online gambling platform. Combined with the daily interaction habits of the client, we preliminarily judged that the cause of freezing was the black USDTs that the client innocently obtained the funds cleaned through the online gambling channel. It was tracked by the funds on the chain of law enforcement officers and was frozen by the US court’s application account.

The subsequent mail communication content also confirmed this judgment. REACT pointed out that the 80,000 USDT transaction recieved by the client’s account were illicit money of a pig-butchering scam, which corresponded to our survey results. This step has been quite clear. We quickly issued an analysis report on address funds and promptly seeking cooperative lawyers to intervene by providing legal relief to try to unfreeze the account.

Note: The crypto pig-butchering scam is a new type of telecommunications fraud in the form of emotional fraud while cryptocurrency as a tool.

After many communication, although the County of Santa Clara still decided to authorize the derived detention of 30728 USDT in a certain account on the exchange in accordance with the relevant legal provisions of California, fortunately, the remaining assets have not been transferred and will not lose all funds. Team of Bitrace Cooperation Lawyers is still assisting the client’s appeal.

This is a typical case that caused the centralized platform account to be frozen because of the charging black U. It is specially that the law enforcement is an American agency while the law enforcement object is ordinary Chinese investors, which sounds alarm to the industry.

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