U.S. Prosecutors Seek Forfeiture of USDT Linked to Tinder-Based Crypto Fraud

Federal prosecutors in Massachusetts have filed a civil forfeiture action seeking to recover slightly more than $200,000 in USDT, which authorities say represents proceeds from an online cryptocurrency investment fraud. The action was brought by the U.S. Attorney's Office for the District of Massachusetts on Monday.

According to court filings, the seized tokens were traced to a scheme that targeted a Massachusetts resident through a dating app. Investigators said the victim was approached on Tinder by an individual using the name "Nino Martin," who later suggested continuing the conversation on WhatsApp. Prosecutors described this shift as a common tactic used to move victims away from moderated platforms into private communication channels.

The person behind the profile allegedly claimed to be a financial adviser and offered guidance on cryptocurrency trading. Following these instructions, the victim opened an account and transferred funds to what law enforcement later identified as a fraudulent trading website. When transfers from the victim's legitimate financial account were flagged as suspicious, individuals associated with the alleged scam platform reportedly contacted the victim and provided instructions intended to bypass restrictions.

By the time the victim reported the matter to authorities, prosecutors said approximately $504,353 had been transferred to the suspected fraudulent platform. Investigators later traced part of those funds to a cryptocurrency account seized in June 2025, with the government stating that the recovered USDT represents a portion of the victim's losses.

The case reflects a broader rise in crypto-related crime. Blockchain analytics firm Chainalysis has reported that crypto crime increased by 162% in 2025, with illicit addresses receiving at least $154 billion. A significant share of this activity has been attributed to so-called "pig-butchering" scams, which combine romance fraud, social engineering, and fake investment opportunities. These schemes typically involve prolonged trust-building before victims are pressured into sending funds to platforms that appear legitimate.

Authorities have increasingly linked such scams to organized criminal networks, particularly in parts of Southeast Asia. Over the past year, U.S. and international agencies have taken steps to disrupt the infrastructure behind these operations, including targeting financial intermediaries and laundering networks. These actions have included sanctions against Cambodia-based laundering marketplace Huione and enforcement actions connected to individuals tied to regional scam activities.

Despite these efforts, asset recovery remains challenging. Alex Katz, CEO and co-founder of Kerberus, said that victims often face slim chances of recovering stolen funds, especially when assets are quickly moved across blockchains or converted into widely used cryptocurrencies. He noted that freezes involving stablecoins may be possible with issuer cooperation, but described the process as difficult and frequently unsuccessful. Katz also pointed to uneven law enforcement responses across jurisdictions, with many agencies lacking clear procedures for handling cryptocurrency fraud cases.