US DOJ Strikes to Recover $12M in USDT Tied to Major Crypto Scam
Federal prosecutors just dropped the hammer on a crypto scam—seizing $12 million in Tether that slipped through the cracks.
Follow the Money
The DOJ isn't playing around. They traced the funds straight to a fraudulent scheme, proving once again that on-chain activity leaves a trail. No hiding behind pseudonymous wallets this time.
Stablecoins Under Scrutiny
USDT's role in this recovery highlights its dual nature: a tool for both innovation and illicit moves. Regulators are watching—every transaction, every address.
Closing Thought
Another day, another crypto cleanup. At least someone's keeping score in this wild west of digital finance—even if it's the feds.
Civil forfeiture an “important tool”
The case comes as U.S. authorities increasingly rely on civil forfeiture to intercept funds on stablecoin networks, demonstrating coordination between prosecutors and issuers to freeze assets before they slip into harder-to-trace channels.
In June, the Department of Justice initiated a civil forfeiture action targeting $225 million in USDT tied to so-called “pig butchering” scams, describing it as the largest crypto-linked seizure of its kind.
“Civil forfeiture has become one of the most important tools in crypto investigations because it not only disrupts illicit activity but also allows prosecutors to actually get funds back to victims,” Ari Redbord, global head of policy at blockchain intelligence firm TRM Labs, told Decrypt.
Civil forfeiture’s dual function has become “a critical point” such that regulators no longer just weigh asset seizure, but also consider restitution for victims, Redbord explained.
“We’ve seen a growing number of cases where prosecutors, working with issuers and exchanges, have used civil forfeiture actions to freeze funds quickly and return them, even when arrests are difficult in non-cooperative jurisdictions,” he added.
