U.S. Seeks Forfeiture of $8.5M in USDT Tied to Crypto Investment Fraud
On Wednesday, July 1, 2026, the United States government, through the U.S. Attorney for the District of Columbia, filed a complaint for forfeiture in a civil action in rem in the U.S. District Court for the District of Columbia. The action targets approximately 8,544,170.3613 USDT, referred to as the "Defendant Property," which is alleged to be the proceeds of a sophisticated money laundering scheme.
The complaint details a cryptocurrency investment fraud (CIF) scheme where criminals, believed to be located abroad, defrauded multiple U.S. victims. These illicit funds were then laundered through a series of virtual currency addresses and exchanges to evade detection. The Federal Bureau of Investigation (FBI) Washington Field Office investigated the matter, identifying the Defendant Property as traceable to these thefts and money laundering activities. The government seeks to forfeit this property to punish and deter criminal activity.
The legal action is based on violations of several U.S. Code sections, including wire fraud (18 U.S.C. §§ 1343, 1349) and money laundering offenses (18 U.S.C. §§ 1956(a)(1)(B)(i), 1956(h)). The complaint outlines the statutory basis for forfeiture under 18 U.S.C. § 981(a)(1)(A) and (C), which mandate forfeiture of property involved in or traceable to such offenses.
The scheme involved unidentified subjects operating through WhatsApp private investment groups, often named "Alliance," to attract victims with promises of lucrative returns. Perpetrators, using aliases such as "MARTIN" and "Professor Quisenberry," guided victims to download fake cryptocurrency exchange applications. Victims were then persuaded to transfer funds from legitimate exchanges to unhosted wallets and subsequently to addresses associated with these fraudulent platforms.
The investigation identified at least 43 victims who collectively suffered losses of approximately $10,515,936.27. Two prominent victims, identified as S.K. and P.V., lost substantial amounts through this scheme. S.K., an 83-year-old resident of Washington, D.C., was scammed into investing approximately $223,748.87 through a fake investment platform called web.caucoin.vip. P.V. lost approximately $3,451,649.35 through a similar scheme involving the RCN exchange.
Blockchain analysis revealed a complex money laundering network involving multiple layers of transactions, consolidation addresses, and cryptocurrency exchanges. The funds were moved through various addresses, often swapped between different cryptocurrencies like Bitcoin (BTC) and Tether (USDT), and routed through services like ChangeNow.io, a decentralized exchange.
The FBI, in coordination with the Alabama Securities Commission, worked with Tether to freeze numerous addresses involved in the laundering process. In total, 28 addresses were frozen, containing approximately $8,544,170.3613 in USDT, traceable to victim losses and the laundering activities.
The government is seeking a court order to declare the Defendant Property forfeited.
Please contact BlockTribune for access to a copy of this filing.
