The US Attorney’s Office filed a civil forfeiture action to recover approximately $3.4 million in Tether (USDT) linked to cryptocurrency investment fraud and money laundering.
The case targets a scheme in which scammers allegedly used misdirected text messages and encrypted apps like WhatsApp and Telegram to lure victims into a fake Ethereum (ETH) investment opportunity.
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Why it matters:
- Civil forfeiture allows the government to seize crypto assets even when perpetrators operate overseas and beyond criminal jurisdiction.
- The case highlights how stablecoins have become the preferred tool for laundering fraud proceeds across borders.
The details:
- Fraudsters allegedly claimed the ETH opportunity was backed by physical gold, per the press release.
- Scammers targeted at least four victims across Massachusetts, Utah, and South Carolina.
- The government seized the USDT in February and March 2025.
- This is one of several civil forfeiture actions the office has filed to recover crypto tied to fraud targeting Massachusetts residents.
The big picture:
- Illicit crypto activity has shifted sharply since 2020. Bitcoin accounted for 70% of illicit transactions at the time. However, in 2025, stablecoins led with 84%, while Bitcoin’s share fell to about 7%.
- In February, Tether froze over $500 million in digital assets connected to a suspected illegal gambling and money-laundering network in Turkey.
- Over the past three years, the stablecoin issuer has reportedly frozen roughly $4.2 billion in USDT linked to alleged illicit activity.
