The Justice Department has filed a civil forfeiture complaint seeking to seize $868,247 in Tether (USDT), alleging the funds are proceeds from cryptocurrency-related confidence scams. According to the complaint, these scams targeted victims in the District of Columbia, Texas, Illinois, and Florida.
U.S. Attorney Jeanine Ferris Pirro announced that co-conspirators stole funds from at least four victims between September 2022 and February 2025. The stolen money was laundered through multiple cryptocurrency wallets in an effort to avoid detection.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Special Agent in Charge David K. Porter of the FBI Honolulu Field Office joined Pirro in making the announcement.
The investigation began when a victim in Hawaii reported losing $1.3 million to a group known as LME Crypto Group. This group impersonated the London Metal Exchange and operated a fraudulent cryptocurrency investment scheme by building relationships with victims online before convincing them to invest through fake trading platforms.
At least one victim from the District of Columbia lost $30,000 after investing in what they believed was a legitimate opportunity. In December 2023, this individual reported their loss to the FBI’s Internet Crime Complaint Center (IC3). The victim stated that they “thought it was an investment to earn big profits in a short amount of time.” They explained that they purchased cryptocurrency on an online platform and invested it using “an app called LME.”
According to authorities, such frauds often begin with criminals contacting potential victims via misdirected text messages or social platforms. After gaining trust or affection, perpetrators encourage investments by highlighting their own alleged success with cryptocurrencies.
A typical tactic involves directing victims to fake websites mimicking real investment platforms. Victims are guided through opening accounts on U.S.-based exchanges and transferring money into cryptocurrency accounts before being instructed to move assets into fraudulent platforms controlled by scammers.
Fraudsters sometimes allow early withdrawals of supposed profits to build credibility but eventually block further access and provide excuses for why funds cannot be withdrawn. Ultimately, victims lose all deposited assets.
Anyone who suspects they have been targeted by cybercrime—including cryptocurrency or romance scams—can report incidents at https://www.ic3.gov. In 2024 alone, losses from cryptocurrency investment fraud reported to IC3 reached approximately $5.8 billion.
The FBI Honolulu Field Office is leading the investigation with support from other Justice Department units and Tether's cooperation in asset transfers.
Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr., along with several trial attorneys from various Justice Department sections, are prosecuting the case.
