DOJ Credits Tether for Assisting in Recovery of Funds in Trump-Linked Crypto Scam

The U.S. Department of Justice has publicly acknowledged stablecoin issuer Tether for its role in recovering $40,300 worth of stolen cryptocurrency connected to a scam impersonating the Trump-Vance Inaugural Committee. According to a July 2nd release, the fraud occurred in December 2024 when fraudulent actors posing as committee co-chairs deceived a political donor into transferring $250,300 in USDT (Tether) on the Ethereum blockchain. The scammers employed a deceptive email address tactic, subtly altering characters to appear legitimate. After receiving the funds, the perpetrators quickly moved the assets through multiple wallets. Law enforcement successfully traced these transactions, recovering a portion of the stolen funds. In its statement, the Justice Department explicitly recognized Tether's assistance, stating: "The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets." This case adds to Tether's growing record of collaboration with authorities to freeze and recover illicit funds, including its recent involvement in dismantling a $225 million pig-butchering scheme. The company has earned praise from multiple agencies for its rapid response in freezing suspicious assets and supporting investigations. Meanwhile, rival stablecoin issuer Circle faces criticism regarding its handling of similar cases. On-chain investigator ZachXBT recently accused Circle of failing to adequately address the use of its USDC stablecoin by North Korean-linked hackers and other malicious actors. This contrast highlights Tether's evolving compliance approach, shifting from past criticism to its current proactive stance in cooperating with law enforcement.