Federal prosecutors in Albany are going after more than $12 million in USDT, they say, that was tied to a crypto investment scam. They’ve filed a civil forfeiture complaint in an attempt to take the funds back. It’s another signal that officials are treating crypto scams just like any other financial crime.
The scheme began with random text messages promising profitable investment opportunities. Those messages led victims to a fake trading platform called ShakepayEX. The site was made to look like a real Canadian crypto exchange, but it wasn’t. People who deposited funds were then hit with fake fees and obstacles when they tried to withdraw. Many were told to deposit even more before they could get their money back. Altogether, more than $10 million was drained from unsuspecting users.
US DOJ Moves to Recover $12M in USDT Tied to Crypto Scam. Civil forfeiture has become "one of the most important tools in crypto investigations," for recovering funds and disrupting illicit activity.
— Crypto News
(@btc_af) September 10, 2025
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To recover the stolen crypto, the government is using civil forfeiture. This approach allows them to seize assets suspected of being tied to crime, even without a criminal conviction. It’s become a go-to method in crypto fraud cases. The idea is simple: freeze the assets before they disappear and try to return them to the rightful owners.
This isn’t the first time the Justice Department has taken this route. Earlier in the year, it filed a similar action involving $225 million in USDT linked to pig butchering scams. That was the largest USDT seizure on record. In that case, law enforcement worked with Tether and blockchain analysts to trace and freeze the funds. The same kind of teamwork is playing out again here.
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Civil forfeiture used to be seen mainly as a way to block criminals from using stolen money. Now it’s also becoming a way to give victims a path toward recovery. By identifying and freezing suspicious wallets fast, officials can prevent stolen funds from being moved through mixers or cashed out. If the courts approve the forfeiture, those funds can eventually be returned to those who lost them.
The next step is for the courts to decide if the seized funds are clearly tied to illegal activity. If they are, the government can take legal possession of the assets. That would open the door for victim compensation. The case also feeds into broader efforts to make crypto markets safer. Prosecutors are hoping that strong enforcement, combined with faster collaboration between platforms, will keep future scams from growing this large.
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