XRP News Today: FBI Recovers 16% of USDt Stolen in Trump-Vance Scam

US federal prosecutors have 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, appearing to come from Steve Witkoff, the 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 vigilance, stating, “Impersonation scams take many forms and cost Americans billions in losses each year.” He urged the public to examine email senders and never send crypto to unknown contacts, adding, “Scammers often use subtle differences to deceive you and gain your trust. Never send money, gift cards, cryptocurrency, or other assets to people you do not know personally or have only interacted with online or over the phone.”

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 Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), Shiba Inu (SHIB), XRP (XRP), USDC (USDC), Solana (SOL) and other cryptocurrencies. This move highlighted the growing acceptance of cryptocurrency in political fundraising, but it also underscored the need for heightened security measures to protect against such scams.

The Department of Justice (DOJ) credited Tether for its role in helping seize the stolen funds. The company assisted law enforcement in freezing and transferring the frozen assets. In June, the federal agency also acknowledged Tether for helping seize around $225 million in USDT tied to a massive “pig butchering” scam that defrauded victims across several countries. This collaboration between law enforcement and cryptocurrency companies is crucial in combating financial crimes and recovering stolen assets.

This incident serves as a reminder of the evolving nature of cybercrime and the importance of robust security measures in the cryptocurrency space. The successful recovery of the stolen funds demonstrates the effectiveness of blockchain analysis and the cooperation between law enforcement agencies and cryptocurrency companies in combating financial fraud. As cryptocurrency continues to gain mainstream acceptance, it is essential for individuals and organizations to remain vigilant and implement stringent security protocols to protect against such scams.