US Files Forfeiture Claim Over $3.4 Million in Tether Tied to Crypto Investment Fraud

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.

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: