DOJ Seeks Forfeiture of $3.4M in USDT Tied to Ethereum Investment Scam
Federal prosecutors in Massachusetts have initiated a civil forfeiture action to recover about $3.4 million in USDT, alleged to be proceeds from a crypto fraud and money laundering scheme. The Department of Justice seized these funds in February and March 2025 following an investigation that began in late 2024. At least four victims were identified, including residents of Massachusetts, Utah, and South Carolina. The scheme allegedly used “relationship-building” tactics, contacting victims through misdirected text messages or encrypted messaging apps, then persuading them to invest in a supposed Ethereum opportunity "backed by physical gold." Victims were instructed to send Ethereum to intermediary wallets controlled by unknown individuals; the ETH was then converted to USDT and moved into unhosted wallets. Prosecutors assert these actions constitute wire fraud and money laundering, with transactions designed to conceal criminal proceeds. This case is part of a series of civil forfeiture actions targeting crypto assets linked to fraud, including recent cases involving romance scams and a large-scale Bitcoin seizure related to a Cambodian network.
