Federal prosecutors in the District of Massachusetts announced a civil forfeiture action on November 9 seeking the seizure of 456,602 USDT, valued at approximately $456,602. The assets are alleged to be proceeds of romance fraud that targeted victims through online dating platforms and Facebook.
Fraud Scheme Details
The complaint alleges that perpetrators built trust with victims on dating sites and Facebook before directing them to invest in purported cryptocurrency platforms. Victims were led to believe they were depositing funds into legitimate investment services, but the money was actually transferred to unhosted cryptocurrency wallets not associated with any exchange.
When victims attempted to withdraw their funds, withdrawals failed even after they paid additional fees and taxes claimed by the scammers.
Investigation and Seizure
Investigators traced the alleged proceeds to two cryptocurrency wallets and seized the funds. The case follows other federal actions targeting cryptocurrency fraud, including forfeiture complaints in July that sought more than $25 million in assets.
Potential Return to Victims
Under civil forfeiture law, third parties may assert ownership claims to the seized assets. These claims must be resolved before any restitution can be made to victims.
Related Enforcement Actions
- A separate forfeiture action announced on July 31 targeted approximately $47,000 linked to a crypto ATM fraud scheme involving technology‑support and government‑impersonation tactics.
- International efforts have resulted in the seizure of $15.1 million tied to an investment scam, with assets placed in an exhibit account for future victim restitution.
