By BlockAI
The U.S. Department of Justice moved to recover more than $12 million in Tether-linked funds tied to an investment fraud scheme. Federal prosecutors filed a civil forfeiture complaint this week in Albany federal court, targeting wallets connected to a spoofed trading platform called ShakepayEX. The action follows reports that at least ten Mandarin-speaking victims were recruited via unsolicited text messages and directed into off-platform investments. This USDT crypto scam forfeiture aims to freeze stolen funds and secure restitution for victims as quickly as possible.
DOJ seizes $12M
The DOJ’s filing identifies wallets and transfers linked to the ShakepayEX impersonation. Prosecutors contend con artists created fake accounts and a cloned interface to simulate trading on a legitimate Canadian exchange. Ari Redbord at TRM Labs said civil forfeiture remains a go-to tool when suspects scatter funds across chains and borders. The USDT crypto scam forfeiture complaint is designed to disrupt the fraud and preserve recoverable digital assets.
How civil forfeiture works
Civil forfeiture allows authorities to seek legal title to assets believed to be proceeds of crime. In this case, prosecutors traced USDT flows and filed in Albany federal court to freeze identified tokens. That legal route can bypass the delays of criminal extradition when operators hide overseas. The USDT crypto scam forfeiture strategy gives courts a way to hold assets while victims file claims.
Victims and tactics
At least ten victims lost funds after responding to unsolicited text messages promising quick returns. They were steered off-platform into accounts controlled by fraudsters, a common playbook in modern crypto scams. The scam’s use of a spoofed ShakepayEX interface boosted credibility and sped transfers in USDT. The USDT crypto scam forfeiture case underscores how social engineering, impersonation, and stablecoin liquidity amplify harm.
Freeze and recover assets
Seizing USDT often requires cooperation from exchanges, custodians, and analytics firms. Prosecutors used blockchain tracing and third-party investigators to map money flows. Civil forfeiture lets the DOJ freeze wallets and seek civil remedies without immediate arrests. If the court approves the claims, the USDT crypto scam forfeiture could lead to returned funds for victims or held assets pending competing claims.
What this means next
This filing follows larger forfeiture actions, such as a $225 million seizure tied to scams last year. Judges will evaluate competing claims from alleged third-party holders and decide on restitution priorities. While arrests are hard when operators are offshore, the USDT crypto scam forfeiture route keeps pressure on illicit networks. For traders and newcomers, the case is a clear reminder: avoid unsolicited offers and never move funds off trusted platforms.
Bottom line
Civil forfeiture is increasingly a frontline response to crypto fraud. The DOJ’s USDT crypto scam forfeiture action in Albany federal court signals stronger coordination among prosecutors, exchanges, and analytics firms. As cooperation improves, USDT crypto scam forfeiture cases may speed recovery for defrauded users and raise the cost of running cross-border scams.
Frequently asked questions about USDT crypto scam forfeiture (FAQ)
What did the DOJ file?
The DOJ filed a civil forfeiture complaint in Albany federal court to seize more than $12 million in USDT linked to ShakepayEX. This USDT crypto scam forfeiture filing asks the court to transfer tokens to victims or hold them pending claims.
Who were the victims?
At least ten Mandarin-speaking victims lost funds after receiving unsolicited text messages and moving assets into off-platform accounts. The complaint is part of broader USDT crypto scam forfeiture efforts aimed at restitution.
Can victims get money back?
If tracing confirms ownership and the court grants forfeiture, victims may receive recovered USDT through a claims process. Civil forfeiture in cases like this USDT crypto scam forfeiture is one path to restitution.
How can people avoid similar scams?
Never move funds off regulated exchanges after unsolicited outreach. Verify URLs, ignore text solicitations, and report suspicious transfers quickly. Prompt reporting increases chances of success in a USDT crypto scam forfeiture action.
