The U.S. Department of Justice is actively working to retrieve approximately $327,829 in stablecoins, reportedly linked to a money laundering operation within an online romance scam. On Monday, the U.S. Attorney's Office in Massachusetts announced the filing of a civil forfeiture action to reclaim more than 327,829 units of Tether's USDt (USDT).
Authorities allege that these funds are tied to a romance fraud scheme initiated by a person identified as "Linda Brown," who targeted a Massachusetts resident beginning in 2024. According to the Justice Department, investigations led to the identification of multiple unhosted cryptocurrency wallets connected to the victim’s funds, which were confiscated in August 2025. The department asserts that all cryptocurrencies in these wallets were involved in money laundering activities.
This announcement follows shortly after Valentine's Day, a time when romance scams often see a surge. Prior to the holiday, the U.S. Attorney’s Office for the Northern District of Ohio had issued a cautionary note, advising individuals not to send money, gift cards, or cryptocurrencies to people they have not met face-to-face.
In related developments, Tether, the issuer of the USDt stablecoin, has reportedly taken action to freeze approximately $4.2 billion worth of its stablecoin linked to criminal activities since 2023. A spokesperson for Tether informed Reuters on Friday that the company can freeze its stablecoin by blacklisting certain wallet addresses. This capability was exercised in February when Tether froze about $544 million allegedly associated with illicit betting platforms and money laundering upon the request of Turkish authorities.
This move by U.S. authorities highlights the ongoing battle against financial fraud and the misuse of cryptocurrencies in illegal activities. It underscores the importance of vigilance and the need for potential investors and cryptocurrency users to remain cautious in their transactions.