US Government Seeks Forfeiture of 200,000 USDT Tied to Bitcoin Theft in Ohio

The U.S. government is taking legal action to seize 200,000 tether (USDT), worth $200,000, linked to a major cryptocurrency fraud. The funds, converted from stolen bitcoin, could soon be returned to the Ohio victim after a forfeiture trial. Investigators used blockchain technology to track the illicit funds, leading to their freeze and eventual federal seizure. The case highlights the growing use of crypto in financial crime.

US Seeks Forfeiture of $200,000 in Tether After Crypto Fraud in Ohio

The U.S. Attorney’s Office for the Northern District of Ohio announced on Friday that the United States has filed a civil forfeiture complaint to confiscate 200,000 Tether (USDT) cryptocurrency, valued at $200,000. The action stems from a February 2024 incident where bitcoin worth $340,000 was fraudulently transferred from an Ohio victim’s wallet. The U.S. Attorney’s Office detailed:

In February 2024, bitcoin valued at approximately $340,000 was fraudulently transferred from the virtual currency wallet of an Ashtabula, Ohio, victim to a cryptocurrency address unknown to the victim. The victim did not initiate or authorize the transaction.

The investigation revealed that the stolen bitcoin was converted to USDT by the perpetrators. “As part of this analysis, it was determined that the fraudulently transferred bitcoin had been converted by the fraudsters to USDT cryptocurrency,” U.S. authorities noted.

The tracking process utilized blockchain technology to trace approximately $200,000 of the stolen funds to two Ethereum-based addresses. Tether Limited Inc. froze the USDT tokens, valued at $200,000, in March 2024. In July, a federal seizure warrant enabled the transfer of the tokens to a law enforcement-controlled virtual wallet.

On Oct. 3, 2024, the United States filed a Complaint in Forfeiture to seize the 200,000 USDT, which will be returned to the Ohio victim if forfeiture succeeds. The U.S. Attorney’s Office explained:

By the Complaint in Forfeiture filed on October 3, 2024, the United States seeks to forfeit the subject 200,000 USDT cryptocurrency. If successful, the United States would then seek to return the forfeited funds to the Ashtabula, Ohio, victim.