US federal prosecutors have filed a civil forfeiture action to recover approximately 3.44 million USDt tied to an alleged online crypto investment scam that defrauded victims across multiple states.
According to a Tuesday announcement from the US Attorney’s Office in Boston, the funds were connected to a scheme in which victims were persuaded to send cryptocurrency to wallets controlled by scammers. Authorities said they seized the USDt in February and March 2025 and are now requesting a court order for permanent forfeiture of the assets.
“In such fraud schemes, scammers obtain funds from victims using manipulative tactics,” prosecutors said. “They establish trust with a victim and then entice them into investing in a fraudulent investment scheme.”
The investigation began in late 2024 after at least four individuals reported losses, including residents of Massachusetts, Utah, and South Carolina.
Fake ETH investment scheme
In this case, scammers first contacted victims via messages that appeared accidental, often sent through text messages or encrypted apps such as WhatsApp and Telegram.
Once trust was established, the perpetrators promoted a so-called exclusive Ethereum investment opportunity, allegedly backed by physical gold. Victims were instructed to purchase Ether and transfer it to wallets provided by the scammers.
Court documents state that once the ETH arrived in these wallets, the funds were routed through intermediary addresses, converted into USDt, and moved to unhosted wallets controlled by the scammers.
Ongoing crypto scam seizures in the US
US authorities have increasingly seized crypto linked to fraud. In one Massachusetts case, a civil forfeiture action targeted $327,829 in USDt connected to a 2024 romance scam.
Meanwhile, federal authorities in North Carolina seized over $61 million in USDt tied to a large-scale “pig-butchering” scheme that defrauded victims through fake investment platforms.
Last month, stablecoin issuer Tether reported freezing about $4.2 billion in USDt over the past three years due to suspected illicit activity, highlighting increased collaboration with law enforcement.
