On July 31, the US Attorney's Office announced a civil forfeiture complaint for 47,461.73111 $USDT. Prosecutors allege that fraudsters obtained the cryptocurrency by tricking victims into withdrawing funds from their bank accounts and depositing cash via cryptocurrency ATMs.
A resident of Ware, Massachusetts, became a target of fraudsters after her computer stopped responding and a pop-up appeared on the screen instructing her to call customer support. The person who answered the call claimed her bank account had been hacked and instructed her to transfer money to the government for safekeeping.
The US Department of Justice (DOJ) stated:
"At the direction of the fraudsters, the victim withdrew funds from her bank account and deposited them into a Bitcoin Depot-branded cryptocurrency ATM located at a gas station in Ludlow, Massachusetts."
The money deposited at the Ludlow ATM went to the criminals, and investigators later traced a portion of the proceeds to a cryptocurrency wallet. In March, authorities seized these funds and linked four other victims of similar fraud schemes to the same wallet address.
Cryptocurrency ATM Fraud Draws Congressional Attention
Cryptocurrency ATM fraud has also drawn attention on Capitol Hill, where the bipartisan "Stop Crypto ATM Scams Act" was introduced in the US House of Representatives on June 11. The proposed federal bill has not yet become law.
If passed, the bill would implement nationwide consumer protections, including a daily transaction limit of $2,000 and an overall deposit limit of $10,000 for new customers within their first 14 days. Additionally, it would require prominent fraud warnings, provide for fund recovery under certain circumstances, and enhance anti-money laundering and record-keeping obligations for cryptocurrency ATM operators. This proposal followed FBI data indicating that Americans lost over $333 million to cryptocurrency ATM fraud in 2025.
The US Treasury's Financial Crimes Enforcement Network (FinCEN) and other federal regulators have also stepped up scrutiny of cryptocurrency kiosks, urging operators to strengthen anti-money laundering measures, monitor suspicious transactions, and identify fraud schemes targeting elderly and vulnerable consumers. As part of separate enforcement actions, financial penalties have been imposed on operators failing to maintain required compliance programs, reflecting broader efforts to reduce fraud perpetrated through cryptocurrency ATMs.
Government impersonation scams often rely on caller ID spoofing, fictitious legal threats, and urgent payment demands directing victims to cryptocurrency kiosks. The FBI has warned that criminals use these tactics to convince victims of the need to transfer funds immediately, beyond the reach of banks or law enforcement.
Massachusetts Expands Cryptocurrency Seizures Linked to Fraud
The latest filing follows a civil forfeiture complaint from March 10, which sought to seize approximately $3.4 million in cryptocurrency allegedly linked to an online investment fraud and money laundering scheme. Prosecutors alleged victims were persuaded to purchase Ether for investments falsely presented as backed by physical gold, before investigators traced and seized a portion of the proceeds.
Another civil forfeiture complaint, filed on March 2, involved approximately $327,829 in cryptocurrency allegedly linked to the laundering of proceeds from an online romance fraud. According to court documents, investigators traced the funds through intermediary wallets where they were converted into $USDT before arriving in wallets seized by federal authorities in August 2025.
The US Attorney's Office added:
"This is one of several civil forfeiture complaints filed by the US Attorney's Office seeking to forfeit cryptocurrency traced to fraud schemes targeting victims in Massachusetts."
Civil forfeiture proceedings allow third parties to claim ownership before the court determines whether those assets can be forfeited to the United States. If the government prevails and valid claims are resolved, the seized cryptocurrency could be returned to the alleged fraud victims.
