US Justice Department seeks recovery of $327,829 in Tether stablecoins used in online romance scams. Warning issued before Valentine’s Day to avoid fraud.
US Justice Department Seeks Recovery of Stolen Stablecoins
The U.S. Justice Department is pursuing the recovery of $327,829 worth of Tether's USDt stablecoins in a civil forfeiture action, alleging they were part of an online romance scam. According to court filings, the funds are linked to a fraudulent scheme targeting a Massachusetts resident who began receiving such scams in 2024.
Law Enforcement Traces Funds to Multiple Wallets
In August 2025, authorities seized multiple unhosted cryptocurrency wallets allegedly involved in the scam. The complaint states that all cryptocurrencies within these wallets are suspected of being used for money laundering purposes. This action was part of a broader investigation into the romance fraud scheme.
Warning Issued Before Valentine’s Day
The U.S. Attorney's Office for the Northern District of Ohio issued a warning just three weeks before Valentine’s Day, advising people not to send money or cryptocurrency to someone they have not met in person. This cautionary measure was part of ongoing efforts by law enforcement to prevent similar scams.
Tether’s Role and Previous Actions
Tether, the issuer of USDt, has also been active in combating illicit activity. According to a recent report from Reuters, the company had frozen approximately $4.2 billion worth of USDt since 2023, following requests from authorities around the world. This includes instances where Tether cooperated with Turkish officials to block funds allegedly used for unlawful betting platforms and money laundering.
Legal Implications and Broader Context
The case highlights the ongoing challenges faced by both law enforcement and cryptocurrency issuers in combating fraud and illegal activity within digital asset markets. It also underscores the evolving nature of financial crime, where online romance scams continue to exploit victims through various means, including stablecoins.
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