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 concerns about online investment fraud schemes that use cryptocurrency to target victims across the country. According to court documents, at least four individuals were targeted in this scheme, including two residents of Massachusetts, one from Utah, and one from South Carolina.
Investigators say that scammers initially contacted victims through what appeared to be misdirected messages via text or encrypted messaging applications such as WhatsApp and Telegram. After building trust with the victims, the perpetrators convinced them to invest in what was described as an exclusive Ethereum investment opportunity allegedly 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 and moved them into unhosted wallets for theft.
The government seized the cryptocurrency involved in February and March of 2025. Federal law prohibits using wire communications for fraudulent schemes or conducting financial transactions designed to conceal criminal proceeds. Civil forfeiture actions allow third parties to assert claims before property can be forfeited and returned to victims.
This action is among several similar cases filed by the U.S. Attorney’s Office seeking forfeiture of cryptocurrency tied to fraud schemes affecting 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 said valuable assistance was provided by the Woburn Police Department in this case. Assistant U.S. Attorney Matthew M. Lyons is prosecuting the civil forfeiture action.