The U.S. Department of Justice, through the U.S. Attorney's Office for Massachusetts, has filed a civil forfeiture action to recover approximately 327,829.720952 Tether (USDT), valued at roughly $327,829. The funds are allegedly connected to an online romance fraud and money laundering scheme.
The investigation began in the fall of 2024 after a Massachusetts resident reported being defrauded. The victim was allegedly persuaded by an individual using the alias "Linda Brown" on a dating app. After weeks of communication, Brown presented what was described as a cryptocurrency investment opportunity. The victim transferred funds, believing they were being invested legitimately.
"Under the guise of legitimately investing the victim’s money, Brown instead tricked the victim into sending funds to wallets controlled by Brown and/or their co-conspirators," stated the U.S. Attorney's Office. The victim discovered the scam when attempts to withdraw the money failed.
Authorities traced the stolen funds through multiple unhosted cryptocurrency wallets before they were converted into USDT. "Some of the victim’s funds were traced to multiple unhosted cryptocurrency wallets, which were seized in August 2025," the Justice Department said. The complaint alleges the cryptocurrency was property involved in money laundering.
This action highlights the increasing use of stablecoins like USDT in fraud schemes due to their liquidity and ease of cross-border transfer. It follows renewed warnings from U.S. authorities about romance scams. Ahead of Valentine's Day, the U.S. Attorney’s Office for the Northern District of Ohio issued an alert titled "Cupid Doesn’t Ask for Crypto," warning the public not to send cryptocurrency to someone they have not met in person.
The filing reflects a broader enforcement pattern where prosecutors use blockchain tracing and civil forfeiture to recover assets, even when cross-border actors are difficult to prosecute directly. This case also follows a recent Reuters report where a Tether spokesperson stated the company had frozen about $4.2 billion worth of USDT connected to suspected criminal activity since 2023, including $544 million at the request of Turkish authorities in February.
