The fight against financial crimes in the cryptocurrency era takes another step forward. The U.S. Attorney's Office of the United States has launched a civil forfeiture action to recover some $3.4 million in Tether (USDT), the dollar-anchored stablecoin linked to a sophisticated cryptocurrency investment fraud scheme and subsequent money laundering.
The Details of the Fraud
The case at the centre of the prosecution reveals the dynamics of a well-orchestrated fraud. According to the authorities' reconstruction, the crooks used a combination of 'misdirection' techniques (text messages sent by mistake) and popular encrypted messaging apps such as WhatsApp and Telegram to lure victims into a fake Ethereum (ETH) investment opportunity.
The fraudulent offer was made even more credible by details designed to convince savers. Investigators discovered that the fraudsters claimed that the investment opportunity in ETH was even guaranteed by physical gold, a classic ruse to give the appearance of solidity and security to a non-existent transaction. The criminal network targeted at least four victims, scattered across several US states: Massachusetts, Utah and South Carolina.
The illicitly obtained sums were later converted into Tether (USDT), a move that, as this case shows, has become standard practice for those who want to move funds across borders quickly and, at least apparently, anonymously. The government managed to get its hands on the funds, seizing the USDTs in February and March 2025.
Why it is Important
This legal action is particularly important for several reasons. First, it demonstrates the effectiveness of the civil forfeiture tool, which allows the government to seize and recover assets of illicit origin even when the perpetrators operate outside the criminal jurisdiction of the United States, often from abroad. Second, the case highlights how stablecoins, and Tether in particular, have become the preferred tool for cleaning up and transferring the proceeds of fraud internationally, exploiting the speed and cross-border nature of blockchain technology. The U.S. Attorney's Office made it clear that this is just one of several civil forfeiture proceedings brought to recover fraud-related cryptocurrencies that have targeted Massachusetts residents.
The Big Picture: The Rise of Stablecoins in Crime
This seizure is part of a much broader and troubling trend. The analysis of illicit flows in the cryptocurrency world shows a radical change from the past. If in 2020 Bitcoin accounted for around 70% of transactions related to criminal activities, the landscape is now completely reversed. In 2025, according to the most recent data, it is stablecoins that dominate the scene, accounting for 84% of the value of illicit transactions, while Bitcoin's share has plummeted to around 7%.
The ability to freeze these assets, when issued by collaborative companies such as Tether, has become a key weapon for law enforcement. In February alone, Tether announced it had frozen over $500 million in digital assets linked to an alleged illegal gambling and money laundering network in Turkey. This is part of a broader effort: over the past three years, the same broadcasting company said it had frozen some $4.2 billion in USDT suspected to be linked to illicit activities, demonstrating a growing collaboration with global authorities to curb the phenomenon.
