The U.S. Department of Justice has credited stablecoin issuer Tether for assisting in the recovery of $40,300 in stolen cryptocurrency connected to a scam involving the Trump-Vance Inaugural Committee.
According to a July 2 announcement, the scam took place in December 2024, when fraudsters posed as the co-chair of the Trump-Vance committee to deceive a political donor. Using a lookalike email address that replaced an uppercase “I” with a lowercase “l,” the scammers convinced the donor to send $250,300 in USDT on the Ethereum blockchain.
After receiving the funds, the scammers quickly moved the assets through multiple wallets in an attempt to obscure the trail. Despite these efforts, authorities were able to trace the transactions and recover a portion of the funds—$40,300.
The Justice Department highlighted Tether’s cooperation in the process, acknowledging the company’s role in facilitating the successful recovery.
“The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets,” the filing stated.
This latest case adds to Tether’s growing reputation for cooperating with law enforcement in efforts to combat crypto-related crime. Just last month, the DOJ commended Tether for helping dismantle a $225 million crypto pig-butchering scam. The company has received repeated praise from various agencies for its swift action in freezing suspicious funds and supporting ongoing investigations.
In contrast, rival stablecoin issuer Circle is coming under increased scrutiny for its handling of similar misuse. Earlier this week, on-chain analyst ZachXBT accused the company of ignoring the growing use of its USDC stablecoin by North Korea-linked hackers and other malicious actors.
ZachXBT questioned Circle’s compliance protocols, noting that despite significant on-chain activity tied to sanctioned entities, the firm has failed to investigate or freeze the implicated wallets.
While Tether was previously criticized for lax compliance, its recent collaboration with authorities marks a shift toward a more proactive and law-abiding stance in the crypto space.
