The U.S. Department of Justice is moving to recover nearly $328,000 in USDT allegedly tied to an online romance scam and money laundering operation.
The United States Attorney’s Office for the District of Massachusetts filed a civil forfeiture complaint seeking control of 327,829.72 USDT, claiming the funds represent proceeds of fraud routed through cryptocurrency wallets.
The action reflects continued federal efforts to trace digital assets linked to scams and return stolen funds to victims.
How the Alleged Romance Scam Worked
According to court filings, the case centers on a Massachusetts resident who was targeted in late 2024 through a dating app.
The alleged fraudster, operating under an alias, reportedly convinced the victim to send money for what was presented as a cryptocurrency investment opportunity. Investigators say the investment platform did not exist and the funds were never used for legitimate trading.
Instead, the money was allegedly diverted through multiple intermediary cryptocurrency wallets.
Authorities claim the funds were eventually converted into USDT, a widely used stablecoin. Converting stolen funds into stablecoins is often viewed as a tactic to obscure their origin and movement across blockchain networks.
Blockchain Tracing and Wallet Seizures
Law enforcement officials seized several of the wallets connected to the case in August 2025 after blockchain analysis linked them to the alleged scam.
Blockchain tracking tools allow investigators to follow transaction flows across public ledgers, even when funds are routed through multiple addresses.
The DOJ’s complaint names the cryptocurrency itself as defendant property, a common practice in civil forfeiture cases involving digital assets.
Under U.S. law, property traceable to criminal activity can be seized and forfeited if a court determines it represents proceeds of illegal conduct.
Civil Forfeiture and Victim Recovery
Civil forfeiture proceedings differ from criminal cases in that the property itself is the subject of the action.
If the court grants forfeiture, the government may use the recovered funds to compensate victims. Third parties who believe they have a legitimate claim to the property can file petitions before forfeiture is finalized.
Prosecutors described the action as part of broader efforts to combat online fraud schemes, including romance scams and crypto-related investment fraud.
Growing Focus on Crypto-Enabled Fraud
Romance scams increasingly involve cryptocurrency due to its global reach and speed of transfer.
At the same time, law enforcement agencies have expanded their use of blockchain analytics to trace illicit transactions and identify associated wallets.
The case underscores two parallel trends: the growing sophistication of crypto-enabled fraud and the increasing ability of authorities to track and recover digital assets.
For victims, civil forfeiture actions like this one offer a potential path toward restitution.
