In brief
- U.S. prosecutors in Massachusetts have filed a civil forfeiture complaint targeting $3.4 million in USDT tied to an alleged investment scam.
- Investigators say victims were approached via “misdirected” texts and DMs, then steered into a fake ETH investment “backed by physical gold.”
- This is the latest in a series of civil forfeiture actions involving crypto allegedly linked to fraud, including a record $14 billion action allegedly tied to a Cambodian scam network.
Federal prosecutors in Massachusetts have filed a civil forfeiture action seeking to recover approximately $3.4 million worth of the stablecoin USDT alleged to be the proceeds of a crypto fraud and money laundering scheme.
According to a press release from the U.S. Attorney’s Office for the District of Massachusetts, the DOJ seized the crypto funds in February and March 2025, following an investigation that began in late 2024.
The investigation identified at least four victims including two Massachusetts residents, plus residents of Utah and South Carolina, the DOJ said. Prosecutors allege the scheme followed a familiar “relationship-building” playbook in which victims were first contacted through seemingly misdirected text messages or encrypted messaging apps including WhatsApp and Telegram.
Court filings allege the victims were persuaded to invest in what was presented as an exclusive Ethereum opportunity “backed by physical gold.” Instead, prosecutors say victims were directed to send ETH to intermediary wallets controlled by unknown subjects, after which the funds were converted into USDT and moved into unhosted wallets.
The complaint alleges conduct consistent with federal wire fraud and money laundering statutes, including transactions designed to conceal the source, ownership, and control of criminal proceeds.
This is the latest in a series of recent civil forfeiture actions involving allegedly fraud-linked crypto, including a March case seeking $327,000 in USDT tied to a romance scam, a January filing over $200,000 in USDT linked to an alleged Tinder pig-butchering scheme, and a record October 2025 action targeting roughly $14 billion in Bitcoin allegedly tied to a Cambodian scam network.
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