DOJ Seizes $327K in USDT; Tether Freezes About $4.2B in Illicit Funds
The U.S. Attorney’s Office for the District of Massachusetts has filed to seize $327,829 in USDT allegedly linked to an online romance cryptocurrency scam, marking another targeted enforcement action against crypto-enabled fraud. Prosecutors say the funds are connected to victim transfers, and the move underscores increasing use of civil seizure tools to recover assets for victims and disrupt illicit networks.
Separately, Tether has disclosed freezing about $4.2 billion in addresses it flagged for illicit activity, a figure cited alongside the seizure. The combined developments highlight ongoing tensions between the promise of stablecoins for fast settlement and regulators’ push to contain misuse, signaling that custody controls and compliance practices will remain central to reducing fraud and improving recoverability for harmed users.