The FBI is working to return $8.2 million in seized cryptocurrency to victims of a widespread crypto fraud scheme. A DOJ forfeiture complaint aims to redistribute the recovered USDT funds.
Federal authorities are moving to return more than $8.2 million in seized cryptocurrency to victims of a large-scale investment fraud scheme. The United States Attorney’s Office for the Northern District of Ohio has filed a civil forfeiture complaint to reclaim 8,207,578 tether (USDT) obtained through an FBI investigation into deceptive crypto scams.
FBI Identifies 33 Victims in Widespread Crypto Fraud
The U.S. Department of Justice (DOJ) announced on Feb. 28, 2025, that the FBI has identified 33 victims across the country who collectively lost $4.9 million to fraudulent cryptocurrency schemes. Additionally, investigators discovered five more affected accounts, bringing the total victim losses to approximately $6 million.
According to court documents, scammers targeted victims using deceptive text messages to gain their trust before persuading them to invest in fraudulent crypto platforms. Once the victims transferred their funds, they found themselves unable to withdraw their money and were often met with fabricated tax demands or threats.
FBI Traces Stolen Crypto Through Blockchain Analysis
One victim, a woman from Lake County, Ohio, lost her entire life savings of $663,352 after a scammer posing as a friend convinced her to invest in a fraudulent crypto trading platform. She was coerced into transferring money via Crypto.com before realizing the scam and reporting it to the FBI’s Internet Crime Complaint Center.
Federal agents conducted blockchain analysis, tracing the stolen assets to three cryptocurrency addresses. This led authorities to seize the USDT tokens in November 2024 with the assistance of Tether Limited. The funds were transferred to a law enforcement-controlled wallet as part of the investigation.
DOJ Moves to Return Seized Crypto to Victims
On Feb. 27, 2025, the DOJ filed a civil forfeiture complaint to gain legal authority over the seized assets. If successful, the U.S. government plans to redistribute the recovered funds to victims.
“If successful in this forfeiture action, the United States would seek to return the stolen funds to the victims,” the DOJ stated.
The complaint further argues that additional assets held in fraudulent accounts were acquired through illegal means and should also be forfeited and returned. While the case must go through legal proceedings, the Justice Department’s primary goal is to compensate those who were scammed.
Next Steps for Victims
Victims of cryptocurrency scams are urged to report fraudulent activity to the FBI’s Internet Crime Complaint Center (IC3) to assist ongoing investigations. As the forfeiture process unfolds, authorities will work to ensure affected individuals receive their recovered funds.
