DOJ Recovers 16% of Stolen USDT in Trump-Vance Scam

The U.S. Department of Justice (DOJ) announced on July 3, 2025, that it had successfully recovered $40,300 in USDT stablecoins that were stolen in a complex scheme involving the Trump-Vance Inaugural Committee. The theft, which occurred on December 26, 2024, involved a Business Email Compromise (BEC) scam where fraudsters impersonated Steve Witkoff, the co-chair of the committee, using a lookalike email address. The victim, a political figure, transferred 250,300 USDT to a wallet controlled by the scammers, who then laundered the funds through multiple wallets to avoid detection.

The FBI, with the assistance of Tether, was able to trace and freeze the stolen funds. Tether played a significant role in the recovery process by freezing the illegal funds, allowing law enforcement to seize them. The recovered funds are now part of a civil forfeiture suit initiated by U.S. Attorney Jeanine Ferris Pirro, with the DOJ seeking to repay the victim the $40,300. However, the remaining $210,000 is still unclaimed.

This incident highlights the growing threat of cryptocurrency frauds, which cost billions of dollars each year. The DOJ emphasized the importance of vigilance and the effectiveness of law enforcement efforts in combating such fraudulent activities. The case also underscores the role of blockchain analysis in tracing and recovering stolen cryptocurrency, demonstrating the potential for technology to aid in the fight against financial crimes.

The scam involved a deceptive email sent on December 24, 2024, which appeared to come from Steve Witkoff. The email used a fraudulent domain, @t47lnaugural.com, which swapped a lowercase “l” for an “i” to deceive the recipient. Believing the request to be legitimate, the victim transferred $250,300 worth of USDT stablecoin on the Ethereum blockchain to a crypto wallet controlled by the scammers. The stolen funds were quickly laundered through multiple cryptocurrency wallets.

The FBI played a crucial role in tracing and recovering $40,300 of the stolen USDT through blockchain analysis. Prosecutors are now seeking to return these assets to the victim through a civil forfeiture action. Assistant Director in Charge Steven Jensen of the FBI Washington Field Office emphasized the importance of scrutinizing email addresses and never sending crypto to unknown contacts. He warned that scammers often use subtle differences to deceive individuals and gain their trust, urging the public to be vigilant against such tactics.

The DOJ credited Tether for its assistance in helping seize the stolen funds. Tether assisted law enforcement in freezing and transferring the frozen assets, aiding in the recovery process. This is not the first time Tether has collaborated with law enforcement; in June, the federal agency acknowledged Tether for helping seize about $225 million in USDT tied to a massive “pig butchering” scam that defrauded victims across several countries.

The incident highlights the growing threat of impersonation scams, which cost Americans billions in losses each year. The DOJ's successful recovery of the stolen funds serves as a reminder of the importance of vigilance and the effectiveness of law enforcement efforts in combating such fraudulent activities. The case also underscores the role of blockchain analysis in tracing and recovering stolen cryptocurrency, demonstrating the potential for technology to aid in the fight against financial crimes.