US Moves to Seize $3.44M USDT Tied to Crypto Investment Scam

TheNewsCryptoPublished on 2026-03-11Last updated on 2026-03-11

Abstract

U.S. federal prosecutors have filed a civil forfeiture action to seize approximately $3.44 million in USDT linked to an online cryptocurrency investment scam. The scheme targeted victims across multiple states by establishing trust through mistaken text or encrypted app messages before promoting a fake Ethereum investment opportunity backed by physical gold. Victims were instructed to send ETH to scam-controlled wallets, where funds were converted to USDT and moved through intermediary addresses. The investigation began in late 2024 after reports from four victims. Authorities seized the USDT in early 2025 and are seeking permanent forfeiture. This case is part of broader efforts to recover crypto assets, including recent actions against romance scams.

The federal prosecutors of the United States have filed a civil forfeiture action to recoup around 3.44 million USDt associated with a claimed online crypto investment scam that targeted victims across various states.

As per the March 10 announcement from the US Attorney’s Office in Boston, the funds were associated with a scheme that convinced victims to send cryptocurrency to wallets managed by scammers.

Officials mentioned that they captured the USDt in February and March 2025 and are now asking a court to permit the permanent forfeiture of the assets. The prosecutors mentioned that in a fraud scheme like this, scammers get funds from victims using manipulative tactics.

It also added that they set up a level of trust with a victim and then lure the victim into investing in a fraudulent investment scheme. The investigation started in late 2024 after around four people reported losses, comprising two residents of Massachusetts and others in Utah and South Carolina.

Performing Scam after Gaining Trust

In this situation, the scammers first had a word with victims via messages that appeared to be sent by mistake, mostly via text messages or encrypted apps like WhatsApp and Telegram.

After making trust, the individuals allegedly pushed what they referred to as an exclusive Ethereum investment opportunity supported by physical gold. Victims are asked to buy Ether (ETH) and send it to wallets given by the perpetrators.

As per the release, court documents state that once the ETH reached those wallets, the funds were directed via intermediary addresses, changed intoUSDt, and shifted to unhosted wallets handled by the scammers.

The officials from the US have lately captured more crypto associated with fraud schemes. In one case, the US Attorney’s Office for Massachusetts filed a civil forfeiture action looking to recover around $327,829 in USDt, which the investigator mentioned was associated with a romance scam targeting a Massachusetts resident in 2024.

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TagsScamUSAUSDT

Related Questions

QWhat is the total value of USDT that U.S. federal prosecutors are seeking to seize in this case?

A$3.44 million USDT.

QHow did the scammers initially contact their victims according to the announcement?

AVia messages that appeared to be sent by mistake, mostly through text messages or encrypted apps like WhatsApp and Telegram.

QWhat type of fraudulent investment did the scammers promote to their victims?

AAn exclusive Ethereum investment opportunity that was backed by physical gold.

QWhat happened to the victims' Ether (ETH) after they sent it to the provided wallets?

AThe funds were directed through intermediary addresses, converted into USDT, and then transferred to unhosted wallets controlled by the scammers.

QWhen did the investigation into this scam begin and what prompted it?

AThe investigation began in late 2024 after approximately four people, including two residents of Massachusetts and others in Utah and South Carolina, reported losses.

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