In a significant case highlighting the intersection of cryptocurrency and fraud, federal prosecutors in Boston have initiated a civil forfeiture action to recover $327,829 in Tether (USDT). This amount is connected to a romance scam that reportedly targeted a Massachusetts resident in 2024.
The scam involved an individual utilizing the alias “Linda Brown” who engaged with the victim through a dating application. After weeks of communication, Brown presented the victim with a crypto investment opportunity, leading to the transfer of funds under the assumption of a legitimate investment.
When the victim attempted to withdraw their funds, they discovered that they had been deceived. The U.S. Attorney”s Office revealed, “Under the guise of legitimately investing the victim”s money, Brown instead tricked the victim into sending funds to wallets controlled by Brown and/or their co-conspirators.”
Authorities traced the misappropriated funds through various cryptocurrency wallets before they were converted into Tether, which were subsequently used in money-laundering transactions. The Justice Department indicated that some funds from the victim were linked to multiple unhosted cryptocurrency wallets, which were seized in August 2025.
This case exemplifies a growing trend of romance-related cryptocurrency fraud. In anticipation of Valentine”s Day, the U.S. Attorney”s Office for the District of Ohio issued a cautionary statement titled “Cupid Doesn”t Ask for Crypto,” warning the public about the tactics used by criminals who build relationships on social media and messaging platforms before soliciting money. These schemes, often referred to as “pig butchering” scams, have become increasingly prevalent.
The Federal Trade Commission has reported staggering losses from romance scams, totaling over $1 billion within a single year. Furthermore, the FBI has identified crypto-related investment fraud as its largest loss category, emphasizing the urgent need for vigilance among potential investors.
Tether, the issuer of the USDT stablecoin, possesses the capability to freeze its assets by blacklisting specific wallet addresses. The company has exercised this authority in response to requests from law enforcement. Notably, in February, Tether froze about $544 million linked to unlawful betting platforms and money laundering activities as per Turkish authorities” directives.
A Tether spokesperson disclosed that since 2023, the firm has frozen approximately $4.2 billion in USDT associated with suspected criminal actions. The civil forfeiture complaint asserts that all cryptocurrencies involved with the seized wallets were part of money laundering operations.
This ongoing situation serves as a stark reminder of the vulnerabilities inherent in the intersection of romance and cryptocurrency, as well as the importance of regulatory actions in curtailing fraudulent activities.
