U.S. federal prosecutors have filed a civil forfeiture case to recover nearly $3.44 million related to an alleged online crypto investment scam that targeted victims in several states.
The funds were linked to a scheme that tricked victims into sending cryptocurrency to wallets controlled by the fraudsters, according to an announcement by the US Attorney’s Office in Boston on Tuesday. Authorities said they seized USDt (USDT) in February and March 2025 and are now asking the court to authorize a permanent asset seizure.
“In such fraud schemes, the fraudsters use manipulative tactics to obtain funds from the victims,” ​​prosecutors said, adding that they establish a level of trust with the victim and then persuade the victim to invest in the fraudulent investment scheme.
The investigation began in late 2024 after at least four people, including two Massachusetts residents and others in Utah and South Carolina, reported the incident.
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Fake ETH Investment Scheme
In this case, the scammers first contacted victims through messages that appeared to be sent by mistake, often via text messages or encrypted apps such as WhatsApp and Telegram.
After building trust, individuals allegedly pushed what they described as an exclusive Ethereum investment opportunity, allegedly backed by physical gold. Victims were instructed to buy Ether (ETH) and transfer it to wallets provided by criminals.
According to the release, court documents say that once the ETH arrived in these wallets, the funds were transferred through intermediary addresses, converted to USDt, and transferred to fraudulent wallets controlled by the fraudsters.
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US seizes more cryptos linked to crypto scams
US authorities have recently seized more cryptos linked to fraudulent schemes. In one case, the Massachusetts U.S. Attorney’s Office filed a civil lawsuit to recover about $327,829 that investigators say is related to a 2024 romance scam involving a Massachusetts resident.
In another case, federal authorities in North Carolina seized more than $61 million linked to a massive “pig killing” scheme that used fake investment platforms to defraud victims.
Last month, stablecoin issuer Tether said it had frozen about $4.2 billion over the past three years linked to suspected illegal activity, reflecting increased cooperation with law enforcement.
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