Federal prosecutors in Albany are chasing more than $12 million USDT, They say it It was You are bound by crypto investment scams. They filed a civil forfeiture complaint in an attempt to retrieve the funds. This is another signal that authorities are dealing with crypto fraud like any other financial crime.

How the scam was unfolded

The scheme began with random text messages that promised profitable investment opportunities. These messages led victims to a fake trading platform called ShakePayex. That’s what the site was like I made it In It looks like It’s a real Canadian crypto exchange, but that wasn’t the case. Those who deposited their funds were hit with fake fees and obstacles when they tried to withdraw. Many people were told to deposit more before they could get their money back. Overall, more than $10 million has been released from unsuspecting users.

us DOJ moves to recover $12 million in USDT related to crypto fraud. Citizens’ forfeitures have become “one of the most important tools in cryptographic investigations” to collect funds and disrupt illegal activities.

– CryptoNews (@BTC_AF) September 10, 2025

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Cases for confiscation of citizens

The government uses citizen confiscation to recover stolen codes. This approach allows for the seizing of suspected crime-bound assets without a criminal conviction. It has become a reliable way to deal with crypto fraud cases. The idea is simple. They freeze the assets before they disappear and try to return them to their legitimate ownership.

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Part of a larger pattern

This is not the first time the Department of Justice has taken this route. Earlier this year, it filed a similar lawsuit, including $225 million in USDT in connection with pig slaughter fraud. It was the biggest USDT attack on record. In that case, law enforcement worked with Tether and blockchain analysts to track and freeze the funds. The same kind of teamwork is unfolding here again.

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Confiscation of citizens for the victims

Citizens’ confiscation was primarily seen as a way for criminals to block the use of stolen money. It is now becoming a way to give victims a path to recovery. By quickly identifying and freezing suspicious wallets, staff can prevent stolen funds from being moved through the mixer or cashed out. If the court approves the forfeiture, those funds can ultimately be returned to those who lost them.

What’s coming next

The next step is for the court to determine whether the seized funds are clearly linked to illegal activities. If so, the government can take legal ownership of the property. It would open the door for victim compensation. The case also prepares for a wider effort to make the crypto market safer. Prosecutors want that strong Enforcement, combined with faster collaboration between platforms, prevents future fraud from becoming this big.

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A California man was sentenced to more than seven years behind bars on charges related to operating an underground drug-trafficking market powered by Bitcoin (BTC) transfers.

Federal prosecutors say John Khuu illegally imported counterfeit pharmaceutical and MDMA pills from Germany and subsequently used dark web markets to distribute the illicit substances to customers across the US.

Khuu, 29, was paid in Bitcoin and other crypto assets, which he and his co-conspirators exchanged for US currency that was then laundered and transmitted to dozens of different accounts.

The California resident was indicted in May 2022 in the Eastern District of Texas and charged with conspiracy to commit money laundering. Three months later, Khuu was also indicted in the Northern District of California and charged with unlawful importation of a Schedule I controlled substance. He was arrested by agents in Garden Grove, California a few days after the second indictment.

Khuu’s arrest was the result of “Operation Crypto Runner,” a multi-agency law enforcement effort that resulted in a batch of charges filed against 21 individuals for their alleged involvement in transnational money laundering networks.

Last year, Khuu pled guilty to conspiracy to commit money laundering, conspiracy to operate an unlicensed money-transmitting business and importation of MDMA.

This week, U.S. District Judge J. Campbell Barker sentenced him to 87 months in federal prison.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Law enforcement authorities in India reportedly seized crypto assets linked to the BitConnect Ponzi scheme that defrauded hundreds of victims before collapsing in 2018.

Indian Express reports that the Enforcement Directorate (ED) seized Rs (Indian Rupee) 1,646 crore or nearly $190 million in crypto assets during its investigation of BitConnect.

The agency, which is in charge of enforcing economic laws and combating financial crimes in India, also seized Rs 1.35 million ($15,550), an SUV and digital devices during searches in the Indian state of Gujarat on February 11th and 15th.

The ED says that from November 2016 to January 2018, the people behind the scheme allegedly amassed funds from investors around the world, including participants located in India. 

BitConnect co-founder Satish Kumbhani allegedly established a network of promoters who received commissions when they enticed investors into depositing cash and Bitcoin (BTC) into the purported lending program. 

The promoters also posted fictitious information on the BitConnect web portal, claiming an average of 1% returns per day or about 3,700% per year. 

The ED says that despite BitConnect’s representation that it could generate up to 40% monthly returns using a proprietary trading bot, the perpetrators of the scheme did not use the invested funds for trading but deposited them into digital wallets that they controlled.

Authorities also say the crypto wallets carried out transactions through the dark web to make them untraceable, but by following on-chain transactions and gathering ground intelligence, the agency identified the wallets and the location of the devices that held the cryptocurrencies.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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