The DOJ aims to seize 225 million in USDT linked to a crypto scam that defrauded more than 400 victims worldwide.
Scammers used fake investment sites to trick users and moved the stolen funds through thousands of blockchain transfers.
Agents worked with Tether to freeze assets and plan to return the recovered funds to victims through legal proceedings.
The U.S. Department of Justice has filed a civil forfeiture complaint. It seeks to seize $225.3 million in USDT. The funds are linked to an international cryptocurrency fraud scheme. Investigators say the scam exploited over 400 individuals through fake investment platforms.
https://twitter.com/DOJCrimDiv/status/1935400636205420888
Victims believed they were engaging in legitimate crypto investments. Instead, their funds were redirected to criminal-controlled accounts. Authorities traced the stolen money through an intricate web of blockchain transactions. The assets were eventually consolidated into wallets holding Tether’s stablecoin.
The U.S. District Court for the District of Columbia received the filing. Officials confirmed the assets were laundered through the OKX exchange before being moved to USDT wallets. This seizure is now the largest in a single cryptocurrency fraud case.
Fraud Scheme Used Social Deception
Scammers built trust with victims before encouraging fake investments. The tactics used often target individuals online through social platforms or messaging apps.
Once convinced, victims sent money to platforms they believed were secure. The operators then redirected funds through disguised blockchain accounts. Authorities confirmed the scheme involved hundreds of thousands of transactions.
The digital assets were spread across multiple wallets to obscure their origin. This approach made it difficult to track the stolen funds quickly. However, investigators used advanced blockchain tools to follow the trail.
Tether worked with law enforcement to freeze suspicious accounts. The company’s internal systems flagged unusual activity. These actions helped stop further movement of stolen assets.
The U.S. Secret Service and the FBI led the investigation in tracking the wallet addresses and monitoring the laundering operation. Their work spanned across borders and involved coordination with other federal teams.
Federal Crackdown on Crypto Investment Scams Grows
The DOJ stated that this action is part of a wider enforcement push. Officials said crypto fraud caused $5.8 billion in losses during 2024. Investment scams accounted for the majority of those losses.
Many victims were older adults targeted online. They lost life savings through manipulated trading platforms. The FBI noted a steady rise in these types of crimes.
Other recent enforcement actions have followed a similar pattern. One case led to the seizure of $24 million tied to ransomware tools. Another resulted in guilty pleas in a $36 million laundering scheme.
Authorities confirmed that the $225 million recovery will support victim restitution. Prosecutors plan to return funds through court-ordered forfeiture. They continue to urge the public to report suspicious crypto offers.