Federal prosecutors in Connecticut recovered and forfeited over $600,000 in USDT linked to an alleged phishing scheme targeting Ledger hardware-wallet owners. Investigators traced the stolen crypto flows to support the seizure and forfeiture action.

Federal prosecutors announced that investigators seized and forfeited more than $600,000 in USDT connected to an alleged phishing campaign aimed at users of Ledger hardware wallets. The case centers on claims that attackers sent victims a highly customized “security check” letter designed to trick Ledger owners into compromising their devices or wallets. According to the reporting, the FBI and state investigators followed the money after the fraud, tracing cryptocurrency transfers that moved from the phishing-driven theft to identifiable on-chain addresses. Those traces were then used to support legal steps to recover and forfeit the assets. The complaint describes how the scheme’s success relied on convincing social-engineering tactics rather than exploiting a vulnerability in the hardware itself. By linking the stolen funds to the fraudulent infrastructure and victim activity, authorities sought to disrupt the criminal proceeds and prevent further laundering. The action underscores how hardware-wallet-related scams continue to evolve by blending targeted impersonation with digital-asset monetization.