Federal prosecutors filed civil forfeiture paperwork seeking control of roughly $327,000 in Tether (USDT) traced to a 2024 romance and investment scam where victims were persuaded to send crypto to a fraudulent trading scheme. The action reflects increased use of blockchain tracing and cooperation from stablecoin issuers to disrupt scam proceeds.

U.S. federal prosecutors submitted civil forfeiture filings in early March 2026 seeking to seize approximately $327,000 in Tether (USDT) allegedly linked to a 2024 romance and investment fraud. Investigators say victims were induced to transfer stablecoins to wallets controlled by scammers posing as romantic partners and bogus trading services, and that on‑chain analysis helped trace flows to identifiable collection points. The filing illustrates a growing reliance on blockchain forensics, subpoenas to virtual asset service providers and cooperation from stablecoin issuers to freeze and repatriate funds. Authorities framed the action as both a law enforcement and victim‑recovery step; civil forfeiture proceedings may enable asset repurposing toward restitution if judicial forfeiture is granted. Prosecutors noted that while $327,000 is modest compared with larger seizures, the case is notable for demonstrating technical tracing capabilities and cross‑sector collaboration that can disrupt crypto cash‑out pathways used by online romance and investment fraudsters.