- DOJ filed a civil forfeiture complaint targeting over $12 million in USDT linked to a fraudulent crypto investment platform.
- Scammers impersonated a crypto exchange called “ShakepayEX” and defrauded 10 Mandarin-speaking victims of over $10 million.
- In a similar civil forfeiture earlier in June, the DoJ seized $225M USDT, the largest crypto seizure in U.S. Secret Service history.
On September 9, 2025, the U.S. Attorney’s Office for the Northern District of New York filed a civil forfeiture complaint to seize more than $12 million in Tether (USDT). The Justice Department said in a statement that this seizure is tied to an elaborate cryptocurrency investment fraud and money laundering scheme. The complaint is part of a growing effort to use forfeiture to disrupt scam operations and return stolen assets to victims.
The modus operandi
According to the DOJ, the FBI uncovered a sophisticated fraud targeting 10 Mandarin-speaking victims, who collectively lost over $10.3 million. The perpetrators initiated contact via unsolicited text messages and persuaded victims to invest through a counterfeit trading platform called “ShakepayEX.”
This platform mimicked a legitimate Canadian crypto exchange, which made it easier to lure the victims. Victims then started encountering withdrawal blocks with fabricated fees and delayed approvals, while scammers continued to solicit additional funds.
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Acting United States Attorney Sarcone said, “Cryptocurrency investment scams are the latest vehicle for con artists from all over the world to victimize Americans right here in our backyards. But this civil action is the latest example that law enforcement can and will use all the tools at our disposal to ensure that those who abuse legitimate technology will not profit from their deviant conduct.”
Civil forfeiture: A strategic tool
Federal prosecutors and blockchain analysts emphasize the utility of civil forfeiture in crypto-related crime. This case follows a dramatically larger initiative in June, where the DOJ initiated a civil forfeiture action against $225 million in USDT linked to global “pig butchering” scams. This was one of the largest crypto seizures in U.S. Secret Service history.
