Court Error Briefly Seals Trump-Linked Crypto Scam Docket

A federal cryptocurrency fraud case tied to Donald Trump’s digital currency circle and MoonPay executives was temporarily sealed in its entirety due to a court clerical error, according to interim U.S. Attorney Jeanine Pirro, who attributed the mistake to court staff rather than prosecutors. The dispute arose after a Nigerian scammer allegedly defrauded victims of $250,000 by impersonating Steve Witkoff, co-chair of the Trump-Vance Inaugural Committee, in December 2024. The victims, reportedly MoonPay executives linked to Trump’s meme coin venture, were tricked into sending 250,300 USDT.ETH after receiving a deceptive email with a typo in the domain name [1].

Pirro emphasized that prosecutors only sought to seal the original complaint to protect the identity of a “company” involved, not the entire docket. “We filed an amended complaint to remove the name of one of the companies,” she stated, noting that victims—including individuals and a company—have a right to privacy in such cases. However, court clerks mistakenly sealed all documents, prompting swift action to unseal them within hours [1]. The error has drawn scrutiny from legal experts, with one anonymous former assistant U.S. attorney suggesting the DOJ may have attempted to obscure the mistake. “It’s like they panicked,” the source said [1].

The case highlights vulnerabilities in cryptocurrency-related transactions. MoonPay, which facilitates on-ramp services for digital assets and served as the official platform for Trump’s Official Trump (TRUMP) meme coin, saw a 1,023% surge in first-time transactions during the coin’s launch week in January 2024 [1]. The scam victimized executives with the same first names as MoonPay’s CEO and CFO, with blockchain records linking one wallet to the company’s founder. The FBI has since recovered 40,300 USDT.ETH of the stolen funds, aided by Tether, the stablecoin issuer, which froze the illicit assets [1].

Critics have questioned the DOJ’s handling of the case. “If you’re friendly with Trump and you’re a Trump crypto bro, you get the DOJ proactively trying to recover your assets,” said Mark Hays, a crypto regulation advocate with Americans for Financial Reform, underscoring perceived political favoritism [1]. Both MoonPay and the DOJ have declined to comment on the matter.

The incident underscores the complexities of prosecuting crypto crimes, where anonymity and rapid digital transfers pose challenges for law enforcement. While the DOJ attributes the docket error to administrative oversights, the case has reignited debates about transparency in cases involving politically connected entities.

Source: [1] [title: DOJ Blames Court Error After Trump-Linked Crypto Scam Docket Briefly Sealed] [url: https://decrypt.co/331384/doj-blames-court-error-after-trump-linked-crypto-scam-docket-briefly-sealed]