Massachusetts federal prosecutors say the seized USDT was allegedly linked to an online investment fraud that used wrong-number messages and encrypted apps to direct victims into a purported gold-backed Ethereum project.
Massachusetts federal prosecutors filed a civil forfeiture action seeking about $3.4 million in USDT allegedly tied to crypto investment fraud and money laundering. According to prosecutors, victims were first contacted through wrong-number text messages beginning in late 2024, then moved to WhatsApp and Telegram, where they were directed into a purported gold-backed Ethereum project. The case expands on the previously reported forfeiture action by adding details about how the alleged scheme approached and funneled victims.