US Prosecutors Seek $327K Crypto Forfeiture Over Romance Scam
TL;DR
US prosecutors are seeking to forfeit $327,829 in USDT linked to a romance scam where a victim was tricked into a fake crypto investment. The funds were laundered through multiple wallets, and authorities must prove the case before returning money to the victim, highlighting ongoing warnings about such scams.
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Prosecutors for the Massachusetts District of the U.S. Attorney’s Office are seeking the civil forfeiture of $327,829 in USDT as part of a money laundering scheme that victimized the user of an online dating app.
An individual operating under the guise of “Linda Brown” communicated with the victim—a Massachusetts resident—for a few weeks beginning in November 2024 before offering a purported cryptocurrency investment opportunity to the individual.
The victim then sent funds to wallets controlled by Brown, believing it was a legitimate investment vehicle, only to find out it was a scam when they attempted to withdraw their money later.
The victim’s funds were then transferred between multiple wallets and later converted into USDT—the Tether-issued, dollar-backed stablecoin—from other cryptocurrencies, according to the complaint.
“It is a violation of federal law to conduct a financial transaction knowing that the transaction is designed to conceal the nature, location, source, ownership, or control of criminal proceeds,” the U.S. Attorney's Office, District of Massachusetts wrote in a statement.
“A civil forfeiture action allows third-parties to assert claims to property,” it added, “which must be resolved before the property can be forfeited to the United States and returned to victims.”
At least a portion of the victim’s funds were traced to crypto wallets that were later seized in August 2025. Prior to forfeiture and return to the victim though, the “United States must prove, by a standard of preponderance of the evidence, that the property is subject to forfeiture,” the release indicates.
Though the crime happened in 2024, the forfeiture filing comes just a few weeks after U.S. prosecutors warned the public of romance scams tied to crypto as Valentine’s Day approached.
"Unlike traditional scams, which execute quickly, these schemes exploit both emotional and financial vulnerabilities," an analyst told Decrypt at that time. “Scammers spend weeks or even months building your trust before introducing seemingly lucrative investment opportunities.”
Last year, the U.S. Department of Justice filed to seize a record $225 million tied to similar crypto scams, which play on a victim’s confidence and trust. Such schemes are often called “pig butchering” scams, referring to the method of fattening up a swine before the slaughter.