DOJ Files to Recover $47K in USDT From Crypto ATM Fraud Scheme

The case lands as Congress takes aim at crypto ATM fraud. The bipartisan Stop Crypto ATM Scams Act was introduced in the House on June 11. If enacted, the bill would cap daily deposits at $2,000 and new-customer deposits at $10,000 over the first 14 days. It would also require fraud warnings, establish refund rules, and tighten anti-money laundering rules for operators.

The FBI reported Americans lost more than $333 million to crypto ATM scams in 2025.

FinCEN and other federal regulators have pushed operators to strengthen anti-money laundering controls and spot fraud patterns that hit older consumers. Separate enforcement actions have fined operators that skipped required compliance programs.

The latest filing follows two other civil forfeiture actions this year. On March 10, prosecutors sought $3.4 million in crypto from an investment fraud that promised victims ether was backed by physical gold. On March 2, they filed for $327,829 tied to a romance fraud scheme where scammers converted stolen funds into USDT before authorities seized the wallet in August.

"This is one of several civil forfeiture actions the U.S. Attorney's Office has filed seeking to forfeit cryptocurrency traced to fraud schemes targeting Massachusetts victims," the office said.

Civil forfeiture lets third parties file ownership claims before a court decides whether the assets go to the government. If the U.S. wins, recovered crypto can be returned to victims.