US Justice Department Seeks to Recover $327,000 in Tether Linked to Romance Scam

Tether (USDT) is a dollar-pegged stablecoin that can be transferred quickly across borders via blockchain networks, while its issuer can freeze specified addresses. The case stems from an online romance scam launched in 2024 against a Massachusetts resident by someone calling herself “Linda Brown.” The funds moved through multiple self-custody wallets, highlighting how law enforcement agencies trace cryptocurrency money laundering.

The US Attorney’s Office for the District of Massachusetts, part of the Justice Department, announced a civil forfeiture action on March 2, 2026, seeking to recover 327,829.72 USDT worth about $327,000. The department said some victims’ funds were traced to multiple self-custody wallets that were seized in August 2025. The complaint alleges that the crypto assets in those wallets were involved in money laundering.