XRP News Today: DOJ Recovers 16% of USDT Stolen in Trump-Vance Scam

The Department of Justice (DOJ) has successfully recovered $40,300 in cryptocurrency from an email scam that impersonated the Trump-Vance Inaugural Committee. The scam involved tricking a donor into sending $250,300 worth of USDT (USDT) stablecoin on the Ethereum blockchain to scammers posing as committee officials. The scammers sent an email on Dec. 24, 2024, that appeared to come from Steve Witkoff, co-chair of the Trump-Vance Inaugural Committee. The fake email used the domain @t47lnaugural.com, swapping a lowercase “l” for an “i” to deceive the receiver. Believing the request was legitimate, the victim transferred the funds two days later into a crypto wallet controlled by the scammers. The stolen funds were quickly laundered through multiple cryptocurrency wallets.

The Federal Bureau of Investigation (FBI) was able to trace and recover $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 the addresses of email senders and never sending crypto to unknown contacts. He warned that scammers often use subtle differences to deceive victims and gain their trust, urging the public to be cautious with their assets.

The DOJ credited Tether for its role in helping seize the stolen funds. The company assisted law enforcement in freezing and transferring the frozen assets. This is not the first time Tether has aided in such efforts; in June, the federal agency also acknowledged Tether for helping seize about $225 million in USDT tied to a massive “pig butchering” scam that defrauded victims across several countries. The collaboration between law enforcement and cryptocurrency companies highlights the growing importance of blockchain analysis in recovering stolen funds and combating cybercrime.

In May 2024, Donald Trump announced that his presidential campaign would accept cryptocurrency donations through Coinbase Commerce. He launched an official fundraising page that supported various cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), Shiba Inu (SHIB), XRP (XRP), USDC (USDC), Solana (SOL), and others. This move underscores the increasing acceptance of cryptocurrencies in political fundraising and the need for heightened security measures to protect donors from scams.