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US prosecutors seek forfeiture of $327,829 in USDT linked to a crypto romance scam
Victim was defrauded after being convinced to invest in a fake cryptocurrency opportunity
Funds were laundered through multiple wallets and converted to USDT
This action follows recent warnings from US prosecutors about crypto-related romance scams.
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Prosecutors for the Massachusetts District of the U.S. Attorney’s Office are pursuing the civil forfeiture of $327,829 in USDT, which they allege is linked to a money laundering scheme that defrauded a user of an online dating application. The victim was reportedly tricked into sending funds to a scammer they met on the dating app, who then presented a cryptocurrency investment opportunity.
The scam began in November 2024 when an individual, posing as “Linda Brown,” communicated with a Massachusetts resident for several weeks. Brown eventually introduced a purported cryptocurrency investment opportunity. The victim transferred funds to wallets controlled by Brown, believing it was a legitimate investment. However, when the victim attempted to withdraw their money, they discovered it was a scam.
According to the complaint, the victim's funds were moved between multiple wallets and subsequently converted into USDT, a stablecoin issued by Tether, from other cryptocurrencies. The U.S. Attorney's Office stated that conducting financial transactions designed to conceal criminal proceeds is a violation of federal law.
A portion of the victim's funds was traced to crypto wallets that were seized in August 2025. Before the property can be forfeited to the United States and returned to victims, the U.S. must prove that the property is subject to forfeiture. Civil forfeiture actions allow third parties to assert claims to the property.
This forfeiture filing comes shortly after U.S. prosecutors issued warnings about the dangers of romance scams with cryptocurrency ties, particularly as Valentine's Day approached. Analysts noted that these scams differ from traditional ones by exploiting emotional and financial vulnerabilities over extended periods, building trust before introducing investment schemes.
Last year, the U.S. Department of Justice initiated the seizure of a record $225 million connected to similar "pig butchering" crypto scams, which involve building a victim's confidence before defrauding them.
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US authorities are seeking to recover $327,829 in USDt linked to a romance scam. The funds were traced to cryptocurrency wallets seized by the Justice Department. Tether has frozen approximately $4.2 billion in USDt connected to illicit activities since 2023.
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Digital asset investment products saw $1 billion in inflows, reversing five weeks of outflows. Bitcoin attracted $881 million, leading the recovery, while Ethereum saw $117 million in inflows. Solana attracted $53.8 million in inflows last week, contributing to $156 million year-to-date. Solana price action shows consolidation between $82.00 support and $88.20 resistance.
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