Feds seize $40k in crypto from Trump-Vance inaugural scam, Tether aids recovery

Federal prosecutors have recovered $40,000 in cryptocurrency linked to a sophisticated email scam impersonating officials from the Trump-Vance inaugural committee.

The Trump-Vance inaugural scam, which duped a donor into sending $250,300 in Tether (USDT), brings the growing risks of election-related crypto scams to the fore.

According to a complaint filed by U.S. Attorney Jeanine Ferris Pirro, the Trump-Vance inaugural scammers sent a fake email on December 24, 2024, posing as Steve Witkoff, co-chair of the Trump-Vance inaugural committee. The email used a deceptive domain—@t47lnaugural.com—swapping an “i” for a lowercase “l” to trick the recipient.

Believing the request was legitimate, the victim transferred the funds to a crypto wallet controlled by the fraudsters. The stolen USDT was quickly laundered through multiple wallets, but blockchain analysis by the FBI helped trace and freeze a portion of the assets.

Trump-Vance inaugural scam: FBI recovers $40k, warns against impersonation scams

The Department of Justice (DOJ) confirmed that $40,300 of the stolen funds were seized through a civil forfeiture action, with plans to return the money to the victim.

Steven Jensen, Assistant Director of the FBI’s Washington Field Office, emphasized the dangers of impersonation scams, which cost Americans billions annually.

“Scammers often use subtle differences in email addresses to deceive victims,” Jensen warned. “Never send money, cryptocurrency, or gift cards to unknown contacts—especially those you’ve only interacted with online.”

The Trump-Vance inaugural scam is part of a broader trend of fraudsters exploiting political events to trick donors. With crypto becoming a popular fundraising tool, experts warn that election-related scams could surge in the coming months.

Trump-Vance inaugural scam: DOJ credits Tether for aiding recovery

The DOJ publicly acknowledged Tether’s cooperation in freezing and recovering the stolen funds. This isn’t the first time the stablecoin issuer has assisted law enforcement—in June 2024, Tether helped seize $225 million tied to a global “pig butchering” scam.

The agency has been increasingly aggressive in pursuing crypto-related fraud. In May 2024, it filed to confiscate $24 million in crypto from Rustam Gallyamov, a Russian national accused of deploying the Qakbot malware.

Trump campaign’s crypto push raises security concerns

The Trump-Vance inaugural scam comes as the president’s campaign embraces cryptocurrency donations. In May 2024, Donald Trump announced his campaign would accept Bitcoin, Ethereum, and other major cryptocurrencies via Coinbase Commerce.

While crypto donations offer transparency through blockchain tracking, they also present new risks. Scammers are exploiting the hype around political fundraising, using fake domains and social engineering to steal funds.

How to avoid election-related crypto scams

With the Trump-Vance inaugural scam serving as a cautionary tale, experts recommend:

• Double-checking email domains for subtle misspellings.

• Verifying donation requests directly with campaign offices.

• Avoiding rushed crypto transactions—legitimate fundraisers won’t pressure donors.

The DOJ’s swift action in this case shows a tougher stance on crypto-related crimes, but vigilance remains key for donors.