TechFlow news, on October 5, according to Bitcoin.com News, the U.S. government is taking legal action to seize 200,000 USDT—worth $200,000—linked to a major cryptocurrency fraud case. The funds originated from stolen bitcoins and may be returned to victims in Ohio following forfeiture proceedings.
The case stems from a February 2024 fraud incident in which approximately $340,000 worth of bitcoin was illegally transferred from the digital wallet of a resident in Ashtabula, Ohio. Investigations revealed that the perpetrators converted the stolen bitcoin into USDT. Law enforcement used blockchain analysis to trace the illicit funds, identifying around $200,000 flowing to two Ethereum-based addresses. Tether froze these USDT tokens in March 2024.
In July 2024, pursuant to a federal seizure order, the tokens were transferred to a cryptocurrency wallet controlled by law enforcement. The U.S. Attorney’s Office stated that if the forfeiture is successful, it will seek to return the funds to the victims in Ohio.
