- Trending
- Comments
- Latest
Federal prosecutors in Massachusetts are seeking forfeiture of $456,602 in Tether (USDT) that authorities say was traced to romance scams, according to a U.S. Attorney’s Office press release dated November 9, 2026.
The complaint alleges victims met the scammers on dating platforms and Facebook, then sent money to fake investment sites. The allegations have not been proven in court.
The civil forfeiture complaint was announced by US Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office. Assistant US Attorney Carole E. Head, Chief of the Asset Recovery Unit, is handling the case.
According to the forfeiture complaint, the alleged scammers approached victims through online dating platforms and Facebook before gradually establishing relationships built on trust.
After developing these connections, the perpetrators reportedly introduced cryptocurrency investments, directing victims towards platforms presented as legitimate opportunities to generate profits.
However, the investment platforms were allegedly fraudulent. Rather than depositing money into genuine trading or investment services, victims were unknowingly transferring cryptocurrency to unhosted wallets, which are digital wallets not maintained by cryptocurrency exchanges.
The scheme reportedly relied on convincing victims that their investments were performing well. Believing they were accumulating profits, individuals continued sending funds, often without realising that their money had already been transferred outside the purported investment platforms.
The fraud became apparent when victims attempted to withdraw their funds but were unable to access their supposed profits.
Even after making additional payments described as taxes and withdrawal fees, victims reportedly remained unable to retrieve their money. This prompted them to recognise that the investment opportunities were fraudulent.
The investigation eventually traced the alleged proceeds to two cryptocurrency wallets, from which authorities seized the 456,602 USDT now targeted by the forfeiture action.
The Massachusetts Attorney’s Office said the civil forfeiture action seeks to recover cryptocurrency allegedly connected to the fraudulent activities and potentially return the funds to affected victims.
Under US federal law, using electronic communications to defraud individuals or obtain money through false representations constitutes an offence. Assets linked to such fraudulent activities may therefore be subject to forfeiture.
Authorities also cited federal restrictions against conducting financial transactions intended to conceal the nature, source, ownership, location or control of criminal proceeds.
The forfeiture process provides an avenue for the government to take possession of assets allegedly connected to criminal activity. However, it also allows third parties to submit claims establishing a legitimate interest in the property.
Such claims must be resolved before the cryptocurrency can be formally forfeited to the United States and returned to victims.
The government has therefore initiated legal proceedings to establish its right to the seized assets rather than treating their recovery as already completed.
The latest action is part of a broader effort by the Massachusetts US Attorney’s Office to recover cryptocurrency connected to online fraud. The office disclosed that it has filed several civil forfeiture actions targeting digital assets allegedly traced to schemes involving victims in the state.
The investigation also reflects growing law enforcement attention to cryptocurrency-related fraud, particularly schemes that combine social engineering with fraudulent investment opportunities.
Romance Fraud Schemes can be difficult to identify because perpetrators often spend considerable time building personal relationships before introducing financial requests. The emotional connection can make victims less likely to question investment recommendations or verify the legitimacy of platforms.
In its announcement, the US Attorney’s Office encouraged individuals who believe they have been affected by cybercrime to report incidents to federal authorities.
Members of the public who suspect they have fallen victim to cryptocurrency fraud, investment scams, technical support scams or business email compromise schemes can contact the office through USAMA.CyberTip@usdoj.gov.
The complaint, titled Complaint for Forfeiture and Affidavit, was made available alongside the announcement.
Authorities emphasised that the allegations contained in the civil forfeiture complaint have not been established as facts in court. The legal proceedings will determine whether the seized cryptocurrency can be forfeited to the United States and made available for victim recovery.
Copyright © 2025 - The Bit Gazette.
