DOJ Busts Crypto Scam Impersonating Trump-Vance Inaugural Committee, Recovers $40K

The U.S. Department of Justice (DOJ) has exposed a cryptocurrency scam involving a Nigerian national who allegedly impersonated Steve Witkoff, a member of the Trump-Vance Inaugural Committee. The scammer used a deceptive email address (@t47Inaugural.com) to trick a donor into transferring 250,300 USDT.ETH on December 26, 2024. USDT.ETH is an Ethereum-based stablecoin pegged to the U.S. dollar.

The DOJ has recovered $40,300 of the stolen funds, now subject to forfeiture. U.S. Attorney Jeanine Ferris Pirro emphasized the importance of verifying recipient details before making crypto transactions, noting the challenges in recovering losses due to blockchain's irreversible nature.

FBI Washington Field Office Assistant Director Steven Jensen highlighted the prevalence of impersonation scams, urging the public to scrutinize email addresses and website URLs. The scammer swiftly moved the stolen USDT to other wallets within two hours of receipt.

The DOJ acknowledged Tether's cooperation in tracking the fraudulent transactions. Tether CEO Paolo Ardoino reaffirmed the company's commitment to compliance and preventing stablecoin misuse. This case follows recent DOJ actions, including the seizure of $225 million in USDT linked to pig butchering scams.

Industry experts warn of increasingly sophisticated scams exploiting political events and AI technology. Chainalysis APAC Policy Head Chengyi Ong called for cross-sector collaboration to combat such crimes.