US seeks forfeiture of $3.4M USDT in crypto scam

US prosecutors seek to seize $3.4M in USDT tied to a crypto scam that targeted victims in several states. The ETH obtained was converted to USDT and seized by authorities in early 2025.

US federal prosecutors have launched a civil forfeiture action to recover approximately $3.4 million in Tether (USDT) linked to an alleged crypto investment scam. The scheme targeted victims in Massachusetts, Utah, and South Carolina. Scammers contacted victims via text messages or encrypted apps like WhatsApp and Telegram, often using messages that seemed accidental. After gaining trust, they promoted a fake Ethereum investment opportunity, falsely claiming it was backed by physical gold. Victims were persuaded to send Ether (ETH) to wallets controlled by the fraudsters. The stolen ETH was converted into USDT and moved to unhosted wallets to hide the funds' origins. Authorities seized the USDT in February and March 2025 following an investigation that began in late 2024. Prosecutors are now seeking court approval for permanent forfeiture as part of efforts to combat crypto-related fraud and money laundering.