The U.S. Attorney’s Office for the District of Connecticut announced on Mar. 27 that it has recovered and forfeited more than $600,000 in cryptocurrency connected to a fraud scheme.
The announcement highlights ongoing efforts by law enforcement to address crimes involving digital assets and protect victims of cyber-related financial schemes.
According to court documents, a Connecticut resident identified as “T.M.” received a letter in September 2025 that appeared to be from “Ledger Security & Compliance.” The letter claimed T.M.’s Ledger device needed a mandatory security check. After following the instructions, T.M.’s device was compromised and approximately $234,000 in cryptocurrency was stolen.
Authorities said the FBI and Connecticut State Police traced the transactions through several cryptocurrency wallets before seizing about $600,000 worth of Tether. The U.S. Attorney’s Office filed a civil forfeiture complaint alleging that the funds were proceeds of wire fraud and involved money laundering. On March 31, 2026, the U.S. District Court entered a decree of forfeiture.
"Generally, the U.S. Attorney’s Office first seeks to forfeit the cryptocurrency, then works with the Department of Justice’s Money Laundering, Narcotics and Forfeiture Section to, in many cases, return it to crime victims so that victims have clear title to the property without risk of further litigation," according to officials.
Assistant U.S. Attorney David C. Nelson is prosecuting this case.
More information about cryptocurrency fraud schemes and reporting related criminal activity can be found at https://www.ic3.gov/CrimeInfo/Cryptocurrency.
