Crypto News: DOJ Recovers $40K in Crypto From Trump-Vance Scam, Credits Tether for Assistance

Key Takeaways:DOJ seized $40,300 in USDT from scammers impersonating Trump-Vance Inaugural Committee officials.Victim was tricked into sending $250K in stablecoins via a phishing email.FBI traced and recovered part of the stolen funds using blockchain analysis.Tether assisted in freezing and transferring the funds to law enforcement.DOJ highlights growing role of crypto firms like Tether in scam investigations.DOJ Recovers $40K in Crypto From Trump-Vance Inaugural Scam, With Key Help From TetherThe U.S. Department of Justice (DOJ) has recovered $40,300 in USDT stolen in a phishing scam involving fraudulent emails impersonating the Trump-Vance Inaugural Committee, according to a new civil forfeiture complaint filed by U.S. Attorney Jeanine Pirro.The scammers allegedly tricked a donor into sending $250,300 in USDT on the Ethereum blockchain, after receiving a spoofed email that appeared to come from committee co-chair Steve Witkoff. The fraudulent domain, @t47lnaugural.com, subtly swapped a lowercase "L" with an uppercase “i” to impersonate the official domain.Believing the message to be authentic, the victim transferred the funds on December 26, 2024, into a wallet controlled by the scammers, who then laundered the assets through multiple addresses.FBI Traces Funds, DOJ Files Civil ForfeitureUsing blockchain analysis, the FBI was able to trace and seize $40,300 of the stolen funds. Prosecutors are now seeking to return the recovered amount to the victim through a civil forfeiture action.“Scammers often use subtle differences to deceive you and gain your trust,” said Steven Jensen, Assistant Director in Charge of the FBI Washington Field Office. “Never send crypto or assets to individuals you do not know personally or have only interacted with online.”DOJ Credits Tether for AssistanceThe DOJ credited Tether for assisting in the recovery process by freezing and transferring the seized stablecoins. This is the latest in a growing number of incidents where Tether has played a role in helping law enforcement track and intercept illicit USDT activity.In June, Tether was also praised for helping seize $225 million in a separate fraud case linked to a global “pig butchering” scam. The stablecoin issuer has stepped up its compliance and tracking efforts as more jurisdictions look to regulated digital asset frameworks.Crypto-Related Scams on the RiseThe incident highlights the ongoing risks posed by phishing and impersonation scams in the crypto space, even as adoption grows. In May 2024, Donald Trump’s campaign began accepting crypto donations via Coinbase Commerce, opening up new channels for political fundraising in assets such as Bitcoin, Ethereum, Dogecoin, Shiba Inu, XRP, USDC, and Solana.As crypto continues to intersect with mainstream finance and politics, federal agencies are expected to increase their focus on digital asset–related fraud, while industry cooperation—especially from stablecoin issuers—becomes increasingly critical in recovering stolen funds.