Federal prosecutors in Massachusetts have filed a civil forfeiture action to recover $3.4 million in USDT, alleging the stablecoin represents proceeds from a cryptocurrency fraud scheme. Investigators state the scam involved victims being contacted via misdirected texts and messages, then persuaded to invest in a fake Ethereum opportunity supposedly backed by physical gold. The funds were seized in early 2025, and the case follows other recent U.S. forfeiture actions targeting crypto linked to alleged fraud.
Federal prosecutors in Massachusetts have filed a civil forfeiture complaint targeting approximately $3.4 million in the stablecoin USDT. Authorities allege the funds are tied to an investment scam and money laundering scheme.
According to a press release from the U.S. Attorney’s Office, the Department of Justice seized the crypto in February and March 2025. The investigation began in late 2024 and identified at least four victims in multiple states.
Prosecutors allege victims were first approached through seemingly misdirected text messages or encrypted apps like WhatsApp and Telegram. They were then steered into investing in what was presented as an exclusive Ethereum opportunity “backed by physical gold.”
Victims sent Ethereum to intermediary wallets controlled by unknown subjects, the complaint states. Those funds were subsequently converted into USDT and moved into unhosted wallets.
The alleged conduct is described as consistent with federal wire fraud and money laundering statutes. Transactions were designed to conceal the source, ownership, and control of criminal proceeds.
This action is the latest in a series of civil forfeitures involving crypto allegedly linked to fraud. Other recent cases include one from March seeking $327,000 in USDT tied to a romance scam and a record October 2025 action targeting roughly $14 billion in Bitcoin allegedly tied to a Cambodian scam network.
