The Justice Department has filed a civil forfeiture complaint seeking the recovery of $868,247 in Tether (USDT), alleging that the funds were obtained through cryptocurrency-related confidence scams. According to U.S. Attorney Jeanine Ferris Pirro, these scams targeted victims in the District of Columbia, Texas, Illinois, and Florida.
Authorities state that co-conspirators stole funds from at least four individuals between September 2022 and February 2025. The stolen money was allegedly laundered through multiple cryptocurrency wallets to evade detection.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Special Agent in Charge David K. Porter of the FBI Honolulu Field Office joined Pirro in announcing the action.
The investigation began in late 2022 after a Hawaii resident reported losing $1.3 million to a group called LME Crypto Group. This group is accused of impersonating the London Metal Exchange while running an elaborate cryptocurrency investment fraud scheme. The group built long-term online relationships with victims before convincing them to invest in fraudulent trading platforms.
At least one victim from the District of Columbia lost $30,000 to this scheme and reported it to the FBI’s Internet Crime Complaint Center (IC3) in December 2023. The victim explained they “thought it was an investment to earn big profits in a short amount of time.” They described purchasing cryptocurrency through an online platform and investing it via “an app called LME.”
According to authorities, such scams often begin with criminals contacting potential victims using misdirected text messages or other online means such as dating apps or professional groups. In these cases, all four victims were approached via seemingly misdirected text messages.
After gaining trust or affection from their targets, perpetrators recommend supposed lucrative investments by highlighting their own or others’ success stories. Victims are then directed to fake investment websites designed to mimic legitimate platforms and are assisted in transferring money into accounts controlled by scammers.
Perpetrators sometimes allow early withdrawals of apparent profits to build credibility before ultimately locking victims out of their accounts and providing excuses for why withdrawals can no longer be made.
Anyone who believes they may have been a victim of cybercrime—including cryptocurrency scams—can report incidents at https://www.ic3.gov. Reports indicate that losses from cryptocurrency investment fraud reached approximately $5.8 billion in 2024 alone according to data provided by IC3.
The case is being investigated by the FBI Honolulu Field Office with assistance from the Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit. The Department acknowledged support from Tether for helping transfer assets involved in this case.
Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr., along with Trial Attorneys Stefanie Schwartz, Ethan Cantor, Gaelin Bernstein, and Daniel Zytnick are prosecuting the case on behalf of federal authorities.
