Federal prosecutors have initiated a civil forfeiture action to recover approximately $47,000 in cryptocurrency allegedly obtained from five victims through a technology-support and government-impersonation fraud scheme. The filing seeks 47,461.73111 USDT, reflecting a broader push to claw back digital assets that scammers often acquire after directing victims to convert cash at cryptocurrency ATMs.
Civil Forfeiture Targets 47,461 USDT
The U.S. Attorney’s Office is seeking forfeiture of 47,461.73111 tether (USDT), a U.S. dollar–pegged stablecoin commonly used for transferring funds on public blockchains. Civil forfeiture enables authorities to seize assets suspected of being connected to criminal activity while courts determine ownership and potential return of funds to victims.
How the Scheme Operated
According to the filed action, the losses stem from a combination of tech-support and government-impersonation scams. In one instance, a computer warning prompted a victim to visit a cryptocurrency ATM, where cash was converted into digital assets and transmitted to addresses controlled by fraudsters. Similar tactics reportedly targeted multiple victims, with total losses approximating $47,000.
Part of a Broader Enforcement Trend
Authorities have increasingly focused on tracing and recovering crypto tied to consumer fraud. While scammers often exploit crypto ATMs to quickly move funds, investigators can sometimes identify and seize assets if they remain in accessible wallets or are intercepted at compliant platforms. Successful forfeiture actions may allow funds to be returned to victims, subject to court approval.
Red Flags for Consumers
- Unexpected computer pop-up warnings directing you to call “support” or install software.
- Demands for payment via cryptocurrency ATMs or requests to move funds urgently.
- Threats or claims of authority from individuals posing as government officials.
Legitimate agencies do not demand payment via cryptocurrency, and unsolicited tech-support contacts are a common fraud vector.