Federal Prosecutors Seek to Recover $3.4 Million in USDT from Alleged Crypto Fraud

Federal prosecutors in Massachusetts have initiated a civil forfeiture action to reclaim approximately $3.4 million in USDT, which they allege originated from a cryptocurrency fraud and money laundering operation. According to NS3.AI, the investigation commenced in late 2024 and resulted in asset seizures in February and March 2025. Court documents reveal that victims were enticed into an Ethereum investment purportedly backed by physical gold. However, their ETH was funneled through intermediary wallets and subsequently converted into USDT.