Federal prosecutors in Massachusetts initiated a civil forfeiture action on Nov. 9, targeting 456,602 USDT traced to two cryptocurrency wallets allegedly used in romance fraud schemes.
The U.S. Attorney's Office for the District of Massachusetts filed the action against funds obtained through dating site and Facebook confidence schemes. According to the complaint, perpetrators cultivated trust with victims online before directing them to fake cryptocurrency investment platforms.
Victims sent funds to unhosted wallets—cryptocurrency addresses not managed by regulated exchanges. When victims attempted to withdraw, the scammers demanded additional fees and taxes. Victims only discovered the fraud after these withdrawal attempts failed.
The scheme follows a standard pattern in crypto fraud: romance angle, false platform legitimacy, fictitious gains displays, small early redemptions to build confidence, then escalating fee demands. The FBI has documented this progression repeatedly across cases.
The Massachusetts action is part of a broader enforcement push. In July, federal prosecutors pursued five separate forfeiture complaints totaling more than $25 million in seized cryptocurrency. The largest involved approximately $12.1 million linked to romance scams affecting more than 200 victims. A second July action targeted about $10.4 million connected to fraudulent investment platforms. Massachusetts prosecutors also filed a crypto ATM fraud forfeiture on July 31 seeking approximately $47,000 allegedly extracted through technology-support and government-impersonation schemes.
In the ATM case, investigators identified five victims whose payments converged into the same wallet. International enforcement shows similar patterns: Ghanaian and British authorities seized $15.1 million linked to an investment scam in June. Those assets were liquidated into an exhibit account, and Ghanaian authorities are screening victims for planned restitution.
The claims in the Nov. 9 complaint remain allegations in the civil forfeiture process, which permits third parties to assert claims to seized assets.
