The civil forfeiture focuses on fraud conducts across several states
US federal prosecutors are seeking to permanently seize roughly $3.44 million in USDt connected to an alleged cryptocurrency investment scam. The civil forfeiture action was filed in Boston, targeting funds that authorities say were obtained through deceptive tactics across multiple states. Officials claim the assets were seized in February and March 2025.
The scheme reportedly involved scammers contacting victims via text messages or encrypted apps like WhatsApp and Telegram. They posed as offering a legitimate Ethereum investment supposedly backed by physical gold. Victims were persuaded to buy ETH and send it to wallets controlled by the perpetrators.
Once the ETH reached these wallets, investigators say the scammers converted it into USDt and transferred it to unhosted accounts. Prosecutors noted that such frauds rely on establishing trust with victims before convincing them to invest in false opportunities. The investigation began in late 2024 after at least four individuals reported losses, including residents of Massachusetts, Utah, and South Carolina.
US authorities have increasingly targeted cryptocurrency scams in recent years. In Massachusetts, prosecutors sought to recover $327,829 in USDt tied to a romance scam in 2024. Meanwhile, officials in North Carolina seized over $61 million in USDt from a large-scale “pig-butchering” scheme that defrauded victims through fake investment platforms.
Stablecoin issuer Tether has cooperated with law enforcement, freezing roughly $4.2 billion in USDt linked to suspected illicit activity over the past three years. These efforts reflect growing scrutiny of crypto-related fraud and the role of digital assets in enabling scams.
Prosecutors are urging the court to approve the permanent forfeiture of the seized USDt. Authorities hope these actions will recover funds for victims while deterring similar cryptocurrency frauds in the future. The case highlights ongoing challenges in regulating digital assets and protecting investors from online scams.
