The US is trying to recover $12 million in USDT related to crypto investment fraud

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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