US Seeks to Recover $12M USDT Tied to Crypto Investment Scam

Federal prosecutors in Albany are going after more than $12 million in USDT, they say, that was tied to a crypto investment scam. They’ve filed a civil forfeiture complaint in an attempt to take the funds back. It’s another signal that officials are treating crypto scams just like any other financial crime.

How the Scam Played Out

The scheme began with random text messages promising profitable investment opportunities. Those messages led victims to a fake trading platform called ShakepayEX. The site was made to look like a real Canadian crypto exchange, but it wasn’t. People who deposited funds were then hit with fake fees and obstacles when they tried to withdraw. Many were told to deposit even more before they could get their money back. Altogether, more than $10 million was drained from unsuspecting users.

US DOJ Moves to Recover $12M in USDT Tied to Crypto Scam. Civil forfeiture has become “one of the most important tools in crypto investigations,” for recovering funds and disrupting illicit activity.

— Crypto News (@btc_af) September 10, 2025

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A Case for Civil Forfeiture

To recover the stolen crypto, the government is using civil forfeiture. This approach allows them to seize assets suspected of being tied to crime, even without a criminal conviction. It’s become a go-to method in crypto fraud cases. The idea is simple: freeze the assets before they disappear and try to return them to the rightful owners.

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Part of a Larger Pattern

This isn’t the first time the Justice Department has taken this route. Earlier in the year, it filed a similar action involving $225 million in USDT linked to pig butchering scams. That was the largest USDT seizure on record. In that case, law enforcement worked with Tether and blockchain analysts to trace and freeze the funds. The same kind of teamwork is playing out again here.

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Making Civil Forfeiture Work for Victims

Civil forfeiture used to be seen mainly as a way to block criminals from using stolen money. Now it’s also becoming a way to give victims a path toward recovery. By identifying and freezing suspicious wallets fast, officials can prevent stolen funds from being moved through mixers or cashed out. If the courts approve the forfeiture, those funds can eventually be returned to those who lost them.

What Comes Next

The next step is for the courts to decide if the seized funds are clearly tied to illegal activity. If they are, the government can take legal possession of the assets. That would open the door for victim compensation. The case also feeds into broader efforts to make crypto markets safer. Prosecutors are hoping that strong enforcement, combined with faster collaboration between platforms, will keep future scams from growing this large.

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Key Takeaways

Federal prosecutors are trying to recover over $12 million in USDT tied to a fake crypto platform called ShakepayEX.
Victims were lured through random messages and tricked into sending funds to a scam site that mimicked a real exchange.
The government is using civil forfeiture to freeze and reclaim the assets, even without a criminal conviction.
This case follows a larger $225 million USDT forfeiture earlier this year, showing a growing pattern in how crypto scams are handled.
Officials hope civil forfeiture will become a reliable way to help victims recover stolen funds from crypto-related fraud.

The post US Seeks to Recover $12M USDT Tied to Crypto Investment Scam appeared first on 99Bitcoins.

US Seeks to Recover $12M USDT Tied to Crypto Investment Scam