DOJ and Tether Dismantle $3.3 Million Crypto Fraud Network in Major Enforcement Push
In a significant move to combat cryptocurrency fraud, the U.S. Department of Justice (DOJ) announced the recovery of over $3.3 million in digital assets linked to sophisticated online investment scams. The crackdown reflects a broader effort by U.S. authorities to track and dismantle illicit crypto networks that exploit unsuspecting individuals through elaborate deception.
On May 23, the DOJ revealed that U.S. District Judge Amir Ali had approved the forfeiture of approximately $2.5 million in cryptocurrencies. An additional $868,000 in digital assets tied to a similar fraud operation was also seized. The recovered assets are part of coordinated law enforcement actions targeting crypto-based financial schemes that have affected numerous victims.
These scams often begin with unsolicited outreach via text messages, dating apps, or professional networks. Once initial contact is made, fraudsters take time to build trust with their targets before introducing what appears to be a lucrative cryptocurrency investment opportunity. Victims are led to deposit funds into legitimate cryptocurrency exchanges, which are then transferred to imitation investment platforms controlled by the scammers.
Such platforms often display fake high returns, convincing victims to invest more. In some cases, scammers even allow limited withdrawals to maintain the illusion of legitimacy. Eventually, access is cut off and the funds vanish, funneled into wallets controlled by the perpetrators.
“These scammers hide behind screens but cause very real harm,” said U.S. Attorney Jeanine Ferris Pirro. “The DOJ will continue to hold them accountable and return stolen assets to victims wherever possible.”
FBI Special Agent Stacey Moy emphasized the emotional and financial damage inflicted on individuals caught in these schemes. “These are not just financial crimes; they are deeply personal betrayals that can ruin lives. We remain committed to pursuing justice for victims and exposing those who prey on them.”
Tether, the company behind the widely used USDT stablecoin, played a key role in the investigation. The DOJ credited Tether’s ongoing cooperation with law enforcement, highlighting the company’s efforts to prevent misuse of its platform by malicious actors.