Justice Department Seeks Forfeiture of $848,247 in Cryptocurrency from Confidence Scams

News Release from U.S. Attorney's Office, District of Columbia, Tuesday, September 2, 2025

           WASHINGTON — The Justice Department filed a civil forfeiture complaint today against $868,247 in Tether (USDT). As detailed in the complaint, the funds are alleged to be ill-gotten gains from several cryptocurrency-related confidence scams that targeted victims in the District of Columbia, Texas, Illinois, and Florida, announced U.S. Attorney Jeanine Ferris Pirro. 

           Co-conspirators stole funds from at least four victims between September 2022 and February 2025 and laundered the funds through a convoluted web of cryptocurrency wallets to evade detection and avoid accountability. 

           Joining in the announcement were Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Special Agent in Charge David K. Porter of the FBI Honolulu Field Office.

           In late 2022, the FBI Honolulu Division Cyber Squad opened the investigation after a victim in Hawaii reported being defrauded out of $1.3 million by the LME Crypto Group, a scam group impersonating the London Metal Exchange while operating a complex cryptocurrency investment fraud scheme by cultivating long-term relationships with victims online and eventually enticing them to make investments in fraudulent cryptocurrency trading platforms.

           At least one victim of the LME Crypto Group was defrauded in the District of Columbia. In December 2023, that victim reported a $30,000 loss to the FBI’s Internet Crime Complaint Center (IC3).[1] The victim’s complaint explained that they “thought it was an investment to earn big profits in a short amount of time.” The victim went on to state that they bought cryptocurrency through an online platform and invested it in “an app called LME.”

           Cryptocurrency investment fraud typically begins by criminals contacting potential victims through seemingly misdirected text messages, dating applications, or professional meetup or investment groups. In the four cases highlighted in the complaint, the victims were each approached through seemingly misdirected text messages.

           Next, using various means of manipulation, the perpetrators gain the victim’s affection or trust. The perpetrator then recommends cryptocurrency investment by touting their own, or an associate’s, success in the field.

           A common tactic is to direct a victim to a fake investment platform hosted on a website that mimics a legitimate platform. The perpetrator assists the victim with opening a cryptocurrency account, often on an exchange based in the U.S., and then walks the victim through transferring money from a bank account to that cryptocurrency account. Next, the perpetrator provides instructions to the victim regarding how to transfer their cryptocurrency assets to what is in actuality a fake investment platform. On its surface, the fraudulent platforms often show lucrative returns, encouraging further investment; underneath, all deposited funds are routed to a cryptocurrency wallet address controlled completely by the perpetrators.

           The perpetrators frequently allow victims to withdraw some of their “profits” early in the scheme to engender trust and help convince victims of the legitimacy of the platform. As the scheme continues, victims are unable to withdraw their funds and are provided various excuses as to why. Ultimately, victims are locked out of their accounts and lose all their funds.

Anyone who believes they are a victim of a cybercrime – including cryptocurrency scams, romance scams, and investment scams – should contact the FBI’s Internet Crime Complaint Center at https://www.ic3.gov. In 2024 alone, approximately $5.8 billion in losses from cryptocurrency investment fraud was reported to the IC3.

            The FBI Honolulu Field Office is investigating the case. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit provided invaluable assistance. The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets.

            This case is being prosecuted by Assistant U.S. Attorneys for the District of Columbia Acting Deputy Chief Kevin Rosenberg and Asset Forfeiture Coordinator Rick Blaylock Jr., along with Trial Attorneys Stefanie Schwartz, Ethan Cantor, and Gaelin Bernstein from the Computer Crime and Intellectual Property Section of the Department of Justice, and Daniel Zytnick with the Consumer Protection Branch of the Department of Justice.

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[1] The Internet Crime Complaint Center, or IC3, is the United States’ central hub for reporting cybercrime. It is run by the FBI, the lead federal agency for investigating cybercrime.

PDF: 20250902_civil_complaint_25-cv-2967.pdf