The United States Attorney’s Office announced on Mar. 2 that it has filed a civil forfeiture action to recover approximately 3,444,470 USDT (Tether), which is alleged to be the proceeds of an online investment fraud and money laundering scheme. The seized cryptocurrency is currently valued at about $3,444,470.
The case highlights ongoing efforts by federal authorities to address fraudulent schemes involving digital assets and protect victims from financial harm. According to the announcement, the investigation began in late 2024 and focused on a cryptocurrency investment fraud scheme that targeted at least four individuals across Massachusetts, Utah, and South Carolina.
Court documents allege that unknown perpetrators initially contacted victims through what appeared to be misdirected messages via text or encrypted messaging apps such as WhatsApp and Telegram. After building trust with the victims, the scammers convinced them to invest in what was described as an exclusive Ethereum investment opportunity supposedly backed by physical gold. Victims were directed to purchase Ethereum and transfer it to wallets controlled by the scammers, who then converted the funds into Tether (USDT) before moving them into unhosted wallets and stealing the assets.
Federal law prohibits using wire communications for fraudulent schemes or conducting financial transactions designed to conceal criminal proceeds. The government seized the USDT involved in this scheme during February and March of 2025. A civil forfeiture action allows third parties to assert claims on property before it can be officially forfeited and returned to victims.
This case is one of several recent actions by the U.S. Attorney’s Office seeking forfeiture of cryptocurrency linked to fraud schemes targeting Massachusetts residents. Members of the public who believe they are victims of cybercrime—including cryptocurrency scams—are encouraged to contact USAMA.CyberTip@usdoj.gov.
United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office, made the announcement with assistance from the Woburn Police Department. Assistant U.S. Attorney Matthew M. Lyons is prosecuting the case.
