OHIO — The United States Attorney’s Office for the Northern District of Ohio has filed a civil complaint seeking the forfeiture of 947,883 Tether (USDT) cryptocurrency tokens, valued at approximately $947,883.
The funds were seized in connection with a cryptocurrency fraud scam that cost an Elyria, Ohio man his entire life savings of $425,000.
According to court documents, the scam began in October 2023 when the victim received a pop-up message on his computer instructing him to call a phone number to resolve a technical issue.
Once he called, scammers claimed his retirement account had been compromised and that funds were being wired to accounts in China, Russia, and a Las Vegas casino.
They convinced the victim to give them remote access to his computer and withdraw funds to prevent the alleged theft. Instead, the scammers moved his savings into cryptocurrency accounts.
Federal investigators tracked the stolen funds through blockchain analysis and discovered they had been converted into USDT cryptocurrency and placed into a virtual wallet.
On July 31, 2024, law enforcement executed a federal seizure warrant, recovering 947,883 USDT tokens. The funds are now held in a law-enforcement-controlled virtual currency wallet.
A civil forfeiture complaint was filed on November 26, 2024, seeking to seize the cryptocurrency as proceeds of fraud. If the forfeiture is successful, authorities plan to compensate the victim.
The U.S. Attorney’s Office noted that all allegations in the complaint must be proven in court by a preponderance of the evidence.
The FBI’s Cleveland Division is actively investigating cryptocurrency scams targeting victims nationwide, including in Northern Ohio.
The case is being handled by Assistant U.S. Attorney James L. Morford, with assistance from Tether.
Officials urge anyone who suspects fraudulent activity involving older adults to contact the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311) or report it online at the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
