U.S. federal prosecutors have announced the recovery of $40,300 in cryptocurrency linked to a fraudulent email impersonating the Trump-Vance Inaugural Committee.
Fraudulent Scheme and Its Consequences
According to a complaint filed by U.S. Attorney Jeanine Ferris Pirro, the fraudulent scheme tricked a donor into sending $250,300 worth of Tether's USDt through the Ethereum network under the guise of committee officials.
The fraudulent email, sent on December 24, 2024, appeared to be from Steve Witkoff, co-chair of the committee. By using a deceptive email domain, the scammers successfully convinced the victim to transfer the funds into a crypto wallet under their control.
Tether's Support and Law Enforcement Work
Through blockchain analysis, the FBI was able to track the stolen funds and recover $40,300 in USDT, which prosecutors are now seeking to return to the victim through a civil forfeiture action.
The DOJ credited Tether for assisting in freezing and transferring the seized assets, highlighting the company's cooperation with law enforcement.
Increasing Incidences of Cryptocurrency Fraud
This recovery comes at a time when cryptocurrency scams and enforcement actions have accelerated. In June, the DOJ recognized Tether's role in helping seize around $225 million in USDT linked to a global "pig butchering" scam.
This event serves as a reminder of the importance of caution when dealing with cryptocurrency, particularly when interacting with unknown contacts.
