FBI Recovers 40,300 USDT in Trump Inauguration Scam

The U.S. Department of Justice, with the assistance of Tether, successfully recovered $40,300 in cryptocurrency from a scam that impersonated the Trump inauguration committee. This operation highlights the effectiveness of law enforcement in tracking blockchain transactions and compensating victims of crypto scams through asset forfeiture cases.

The FBI was able to trace and recover the stolen cryptocurrency, which was sent by victims who believed they were making political donations to the Trump-Vance Inaugural Committee. The scammers used spoofed email addresses to trick victims into sending crypto payments, exploiting a subtle difference in email domains by using a small “i” instead of a small “L” in the email address.

On December 24, 2024, the victims received a phishing message requesting them to deposit into a cryptocurrency wallet. Two days later, the victim deposited 250,300 USDT.ETH, believing the funds were being invested in financing the inaugural committee. The stolen cryptocurrency was then laundered through several wallet addresses within two hours.

The Department of Justice acknowledged Tether’s cooperation in facilitating the transfer of recovered assets during the investigation. This collaboration between Tether and federal regulators signifies a growing partnership between government officials and cryptocurrency companies. Tether’s involvement in asset recovery operations comes as the company faces competition from USDC offered by Circle in payment systems.

Despite facing competition, Tether has shown increased market share in stablecoin transactions. By May 2025, USDT’s transaction share increased to 43% while USDC dropped to 56%. This market share increase is combined with Tether’s collaboration with law enforcement agencies for cryptocurrency scam cases, indicating a favorable industry response towards helping victims recover stolen cryptocurrency through legal processes.

FBI Assistant Director Steven J. Jensen warned that impersonation scams cost Americans billions in losses annually. He emphasized the need for careful verification of email addresses, website URLs, and spelling in received messages. The scam targeting Trump inauguration donors used subtle differences in communication to deceive victims and gain their trust through fake official correspondence.

U.S. Attorney Jeanine Ferris Pirro cautioned donors to verify recipients multiple times before sending cryptocurrency. Law enforcement agencies recommend never sending money, gift cards, cryptocurrency, or other assets to unknown individuals contacted only through online or phone interactions. The FBI Internet Crime Complaint Center provides reporting avenues for suspected crypto scam activity, including business email compromise, romance scams, investment fraud, and pig butchering schemes.