Gate News reports that on March 11, U.S. federal prosecutors in Massachusetts filed a civil forfeiture lawsuit seeking to recover approximately $3.4 million worth of stablecoin USDT related to a cryptocurrency fraud and money laundering scheme. The Department of Justice began investigating in late 2024 and recovered these crypto funds in February and March 2025. Court documents show that victims were lured into investing in an exclusive Ethereum opportunity claiming to be backed by physical gold. However, prosecutors state that victims were actually instructed to send ETH to an intermediary wallet controlled by an unknown person, after which the funds were exchanged for USDT and transferred to a non-custodial wallet. The complaint alleges that this conduct violated federal telecommunications fraud and money laundering laws, including transactions aimed at concealing the source, ownership, and control of criminal proceeds.
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