- DOJ seized $225.3 million in crypto (USDT) linked to large-scale crypto investment scams.
- Tether collaborates with authorities to combat fraud and ensure token integrity.
In a significant move to combat crypto-related fraud, U.S. federal authorities have seized $225.3 million worth of Tether’s USDT linked to widespread cryptocurrency investment scams.
According to a complaint filed by the U.S. Department of Justice in the District (DOJ), Columbia, the seized funds were stored in crypto wallets linked to a sophisticated blockchain-based money laundering network.
This network was tied to investment scams, where fraudsters gained victims’ trust online—often through dating apps or social media—before leading them into fake investment schemes.
Once the victims transferred their funds, the scammers disappeared, leaving significant financial losses behind.
This action marks the largest civil forfeiture involving digital assets in the history of the U.S. Secret Service.
DOJ’s crypto scam hunt!
According to the DOJ, the scammers laundered stolen USDT through OKX and split it across accounts to obscure its origin.
Law enforcement traced and seized the funds using blockchain analysis and help from cooperating crypto firms. Since the funds were in USDT, authorities easily tracked the transfers and executed an effective seizure.
Providing further information on the matter, the DOJ added,
“The complaint alleges that the cryptocurrency addresses that held the over $225.3 million in cryptocurrency were part of a sophisticated blockchain-based money laundering network that executed hundreds of thousands of transactions.”
Notably, this blockchain network was used to conceal the nature, source, control, and ownership of proceeds derived from cryptocurrency investment fraud.
Adding to the fray, Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, explained,
“These schemes harm American victims, costing them billions of dollars every year, and undermine faith in the cryptocurrency ecosystem.”
He further added,
“Our investigators and prosecutors are relentlessly pursuing these scammers and their ill-gotten gains, and we will relentlessly pursue recovery of victim funds.”
Plan of action
Interim U.S. Attorney for the District of Columbia, Jeanine Pirro—formerly a Fox News host—announced that the seized funds will be used to compensate victims of the crypto scam.
Although full details of the scheme remain undisclosed, court documents reveal that fake crypto investment platforms defrauded over 400 people, resulting in millions of dollars in losses.
Tether’s involvement in combating crypto crimes
Tether played a key role in a major digital asset seizure.
Since 2023, the company has acknowledged investigations into the misuse of its token—initially tied to human trafficking—and has steadily ramped up its efforts to address such abuse.
Notably, Tether assisted the U.S. Secret Service in freezing $23 million linked to the sanctioned Garantex exchange.
It also collaborated with TRON, TRM Labs, and Spanish authorities to block over $100 million in illicit crypto funds.
Tether CEO Paolo Ardoino stated:
“We are setting the standard for compliance in digital assets and leading efforts to ensure stablecoins are not misused by bad actors.”
These developments follow a recent MEXC crypto exchange report that highlighted a 200% increase in fraudulent trading activity during Q1 2025.
Crypto-related scams are on the rise. With President Donald Trump in office, the administration’s next move remains uncertain.
The future of digital assets under this new leadership is yet to unfold.
