Tether Earns DOJ Recognition for Assisting in Recovery of Crypto Stolen in Trump-Linked Scam

Department of Justice Commends Tether for Stablecoin Fraud Recovery

The U.S. Department of Justice (DOJ) has publicly credited Tether, the world's leading stablecoin issuer, for its crucial role in recovering $40,300 in stolen cryptocurrency connected to a high-profile scam. The scheme, which unfolded in December 2024, targeted a political donor by impersonating the Trump-Vance Inaugural Committee, utilizing sophisticated email spoofing tactics.

How the Crypto Scam Unfolded

According to an official DOJ statement released on July 2, fraudsters deceived a donor into sending $250,300 worth of Tether (USDT) tokens on the Ethereum blockchain by posing as the Trump-Vance committee's co-chair. The scammers employed a common phishing technique, changing a single letter in the email address—substituting a lowercase “L” for an “I”—to trick the victim into believing the request was authentic.

After successfully duping the donor, the perpetrators rapidly shuffled the USDT through a series of digital wallets in an effort to obfuscate the funds’ trail. Despite these laundering attempts, investigators tracked the blockchain transactions and managed to recover $40,300 of the stolen assets.

Tether’s Growing Reputation for Law Enforcement Collaboration

The DOJ’s announcement specifically acknowledged Tether’s cooperation in facilitating the asset transfer and recovery, stating, “The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets.”

This latest praise adds to Tether’s evolving record of partnering with global law enforcement agencies to freeze and recover illicit cryptocurrencies. Notably, the stablecoin firm earned recognition in June for aiding authorities in dismantling a massive $225 million crypto scam. Agencies have routinely cited Tether’s swift response in freezing suspicious accounts and supporting blockchain investigations.

Stablecoin Compliance Under the Microscope

While Tether faces scrutiny in the past for allegedly lax compliance protocols, its recent proactive efforts suggest a significant shift toward stronger regulatory practices within the cryptocurrency sector. Meanwhile, rival stablecoin issuer Circle has come under fire for reportedly not doing enough to prevent the misuse of its USDC token by North Korea-linked hackers and sanctioned entities. Blockchain analyst ZachXBT recently highlighted concerns over Circle’s monitoring and response procedures regarding high-risk wallet activity.

This incident further highlights the critical role stablecoin issuers play in combating crypto-related fraud, money laundering, and illicit activity, demonstrating the value of transparency, compliance, and cooperation with authorities within the rapidly evolving digital asset landscape.