The U.S. Department of Justice has seized $225.3 million in cryptocurrency (USDT) tied to a massive cryptocurrency investment scam.
Tether is working with authorities to combat fraud and ensure token integrity.
In a major move to combat cryptocurrency-related fraud, U.S. federal authorities have seized $225.3 million worth of Tether USDT in connection with a widespread cryptocurrency investment scam.
According to a complaint filed by the U.S. Department of Justice, District of Columbia (DOJ), the seized funds were stored in crypto wallets tied to a sophisticated blockchain-based money laundering network.
The network is tied to investment scams where scammers gain the trust of victims online (usually through dating apps or social media) and then trick them into participating in fake investment schemes.
Once the victims transferred their funds, the scammers disappeared, leaving behind significant financial losses.
The action is the largest civil forfeiture case involving digital assets in the history of the U.S. Secret Service.
The Department of Justice is going after cryptocurrency scams!
According to the DOJ, scammers laundered stolen USDT through OKX and dispersed it across various accounts to obscure its origin.
Law enforcement tracked and seized the funds using blockchain analysis and the help of partner crypto companies. Since the funds were in the form of USDT, it was easy for authorities to track the transfers and effectively seize them.
Providing further information on the matter, the DOJ added,
“The complaint alleges that the cryptocurrency addresses holding over $225.3 million in cryptocurrency were part of a sophisticated blockchain-based money laundering network that executed hundreds of thousands of transactions.”
Notably, the blockchain network was used to obscure the nature, source, control, and ownership of proceeds from the cryptocurrency investment fraud.
Matthew R. Galeotti, Chief of the DOJ’s Criminal Division, further explained,
“These schemes harm American victims, costing them billions of dollars each year and undermining confidence in the cryptocurrency ecosystem.”
He further added,
“Our investigators and prosecutors are relentlessly pursuing these scammers and their ill-gotten gains, and we will be relentless in recovering victims’ funds.”
Action Plan
Jeanine Pirro, Interim U.S. Attorney for the District of Columbia and former Fox News host, announced that the seized funds will be used to compensate victims of the cryptocurrency scam.
While the full details of the scheme have not been disclosed, court documents show that the fake crypto investment platform defrauded more than 400 people of millions of dollars in losses.
Tether’s involvement in the fight against crypto crime
Tether has played a key role in a major digital asset seizure.
Since 2023, the company has acknowledged an investigation into the misuse of its tokens (initially linked to human trafficking) and has been increasing its efforts to address such abuse.
Notably, Tether assisted the U.S. Secret Service in freezing $23 million associated with the sanctioned Garantex exchange.
It also worked with TRON, TRM Labs, and Spanish authorities to block more than $100 million in illicit crypto funds.
Tether CEO Paolo Ardoino stated:
“We are setting the standard for digital asset compliance and leading efforts to ensure stablecoins are not abused by bad actors.”
These developments come after the MEXC cryptocurrency exchange recently reported a 200% increase in fraudulent trading activity in the first quarter of 2025.
Crypto-related scams are on the rise. With President Donald Trump now in office, the administration’s next steps remain uncertain.
The future of digital assets under the new leadership is unclear.
