The U.S. Department of Justice (DOJ) has credited stablecoin giant Tether for helping recover over $40,000 in crypto tied to a scam that impersonated the Trump-Vance Inaugural Committee.
According to a DOJ release on July 2, the scam took place back in December 2024, when fraudsters posed as the co-chair of the Trump-Vance committee to target a political donor. Using a sneaky tactic, the scammers set up a fake email address nearly identical to the real one swapping an uppercase “I” for a lowercase “l” to trick the victim into believing the request was legitimate.
Falling for the scheme, the donor ended up sending $250,300 worth of USDT (Tether) on the Ethereum network. Within hours, the scammers shuffled the stolen funds through multiple crypto wallets in an effort to cover their tracks.
However, investigators managed to trace the transactions, ultimately recovering $40,300 of the stolen funds.
Tether Praised for Helping Law Enforcement
In its announcement, the DOJ specifically called out Tether for its cooperation in helping secure the assets:
“The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets,” the statement read.
This latest case highlights Tether’s ongoing efforts to work alongside law enforcement in tracking down illicit crypto activity. Just last month, the DOJ praised Tether for its role in dismantling a $225 million crypto “pig-butchering” scheme—a type of scam that lures victims into fake investment opportunities before draining their funds.
Multiple agencies have recently commended Tether for quickly freezing suspicious assets and supporting investigations—a significant shift from the days when the company was under fire for its compliance practices.
Circle Faces Scrutiny Amid Tether’s Cooperation
Meanwhile, Tether’s rival, Circle the issuer of USDC is facing criticism for allegedly being less proactive. Earlier this week, blockchain investigator ZachXBT accused Circle of ignoring suspicious activity tied to North Korea-linked hackers and other malicious actors.
ZachXBT claimed that despite significant wallet flows connected to sanctioned entities, Circle hasn’t taken enough steps to investigate or freeze those wallets.
Tether, once the target of similar criticism for lax oversight, now appears eager to showcase its commitment to compliance and cooperation with law enforcement a move that could help bolster its reputation in the increasingly regulated world of crypto.
