U.S. Attorney Rebecca C. Lutzko | U.S. Department of Justice
The United States Attorney’s Office for the Northern District of Ohio has initiated a civil forfeiture complaint against 947,883 Tether (USDT) cryptocurrency, valued at approximately $947,883. This action follows a scam that began in October 2023 involving an Elyria, Ohio resident who was deceived into transferring his life savings.
According to court documents, the victim was misled by a pop-up window on his computer instructing him to call a number for technical support. The scammers convinced him that his retirement account had been compromised and that funds were being transferred to accounts in China or Russia and a casino in Las Vegas. To prevent these transactions, he was told to wire money. Believing he was safeguarding his account, the victim allowed remote access to his computer. The scammer then withdrew money and moved it into various cryptocurrency accounts, resulting in a loss of $425,000.
Investigators traced the stolen funds through blockchain analysis and found they had been converted into USDT cryptocurrency stored in a virtual wallet. On July 31, 2024, law enforcement executed a federal seizure warrant to recover these tokens and transferred them to a law-enforcement-controlled wallet.
The complaint filed on November 26 seeks to forfeit the USDT cryptocurrency with an aim to compensate the victim if successful. The United States claims that additional cryptocurrency at this address is also subject to forfeiture as fraud proceeds.
It is important to note that these claims are allegations only; they must be proven by evidence at trial.
The FBI Cleveland Division continues its investigation into similar scams across the U.S., including those affecting residents of Northern Ohio. Assistant United States Attorney James L. Morford represents the government in this case. The USAO acknowledges Tether's assistance.
Individuals suspecting fraudulent activities involving older adults are encouraged to contact the National Elder Fraud Hotline at 1-833-FRAUD-11 or visit IC3.gov for reporting.