US Authorities Move to Recover $12M USDT Linked to Crypto Investment Scam

Feds crack down on digital asset fraud—proving even stablecoins can't outrun the long arm of the law.

The Hunt for Digital Dollars

US investigators are tracing $12 million in Tether tokens across blockchain ledgers—following the money through decentralized networks that scammers thought would keep them anonymous. They're proving that on-chain transparency cuts both ways.

Scammers’ Favorite Tool Becomes Their Downfall

Fraudsters picked USDT for its stability and liquidity—never expecting that very predictability would become their undoing. The stablecoin’s traceability gives investigators a clear path to follow, bypassing traditional banking delays.

Regulation Catches Up With Innovation

This recovery effort signals regulators are finally getting comfortable tracking digital assets—and willing to pursue them across borders and protocols. It’s a warning shot to bad actors who thought crypto meant playing in the shadows.

Because nothing says 'financial revolution' like watching the government successfully seize your supposedly untouchable digital tokens—maybe next time they’ll stick to old-fashioned offshore accounts.

How the Scam Played Out

The scheme began with random text messages promising profitable investment opportunities. Those messages led victims to a fake trading platform called ShakepayEX. The site was made to look like a real Canadian crypto exchange, but it wasn’t. People who deposited funds were then hit with fake fees and obstacles when they tried to withdraw. Many were told to deposit even more before they could get their money back. Altogether, more than $10 million was drained from unsuspecting users.

US DOJ Moves to Recover $12M in USDT Tied to Crypto Scam. Civil forfeiture has become "one of the most important tools in crypto investigations," for recovering funds and disrupting illicit activity.

— Crypto News(@btc_af) September 10, 2025

A Case for Civil Forfeiture

To recover the stolen crypto, the government is using civil forfeiture. This approach allows them to seize assets suspected of being tied to crime, even without a criminal conviction. It’s become a go-to method in crypto fraud cases. The idea is simple: freeze the assets before they disappear and try to return them to the rightful owners.

Part of a Larger Pattern

This isn’t the first time the Justice Department has taken this route. Earlier in the year, it filed a similar action involving $225 million in USDT linked to pig butchering scams. That was the largest USDT seizure on record. In that case, law enforcement worked with Tether and blockchain analysts to trace and freeze the funds. The same kind of teamwork is playing out again here.

Making Civil Forfeiture Work for Victims

Civil forfeiture used to be seen mainly as a way to block criminals from using stolen money. Now it’s also becoming a way to give victims a path toward recovery. By identifying and freezing suspicious wallets fast, officials can prevent stolen funds from being moved through mixers or cashed out. If the courts approve the forfeiture, those funds can eventually be returned to those who lost them.

What Comes Next

The next step is for the courts to decide if the seized funds are clearly tied to illegal activity. If they are, the government can take legal possession of the assets. That WOULD open the door for victim compensation. The case also feeds into broader efforts to make crypto markets safer. Prosecutors are hoping that strong enforcement, combined with faster collaboration between platforms, will keep future scams from growing this large.

Key Takeaways

• Federal prosecutors are trying to recover over $12 million in USDT tied to a fake crypto platform called ShakepayEX.
• Victims were lured through random messages and tricked into sending funds to a scam site that mimicked a real exchange.
• The government is using civil forfeiture to freeze and reclaim the assets, even without a criminal conviction.
• This case follows a larger $225 million USDT forfeiture earlier this year, showing a growing pattern in how crypto scams are handled.
• Officials hope civil forfeiture will become a reliable way to help victims recover stolen funds from crypto-related fraud.