DOJ Recovers $40,300 in Crypto from Scam Posing as Trump-Vance Inaugural Committee

U.S. federal prosecutors have reclaimed $40,300 in cryptocurrency connected to a fraudulent email scheme impersonating the Trump-Vance Inaugural Committee. The case, announced by the Department of Justice on Wednesday, involved a donor being deceived into sending $250,300 worth of Tether's USDT stablecoin on the Ethereum blockchain to scammers posing as committee representatives. According to a complaint filed by U.S. Attorney Jeanine Ferris Pirro, the fraudulent email, sent on December 24, 2024, appeared to originate from Steve Witkoff, co-chair of the Trump-Vance Inaugural Committee. The scammers used a deceptive email domain, substituting a lowercase "l" for an "i", to successfully convince the victim to transfer funds two days later to a cryptocurrency wallet under their control. The stolen assets were rapidly moved through multiple wallets to obscure the transaction trail.

The DOJ acknowledged the role of blockchain tracing and Tether's cooperation in recovering the funds. Through blockchain analysis, the FBI successfully tracked and recovered $40,300 in USDT, which prosecutors are now seeking to return to the victim through civil forfeiture proceedings. The DOJ highlighted Tether's assistance in freezing and transferring the seized assets, emphasizing the company's ongoing collaboration with law enforcement.

Steven Jensen, Assistant Director in Charge of the FBI's Washington Field Office, warned about the increasing threat of impersonation scams, advising the public to scrutinize sender addresses and exercise caution when sending cryptocurrency to unfamiliar contacts. "Scammers frequently rely on subtle distinctions to deceive victims and gain their trust," Jensen stated, adding, "Never transfer money, gift cards, cryptocurrency, or other assets to individuals you do not know personally or have only interacted with online or via phone."

The recovery underscores the growing frequency of crypto-related scams and enforcement actions. Notably, in June, the DOJ recognized Tether's assistance in seizing approximately $225 million in USDT tied to a global "pig butchering" scam. Additionally, in May, the department filed a civil forfeiture complaint to reclaim over $24 million in cryptocurrency linked to Russian national Rustam Gallyamov, who was accused of developing the Qakbot malware.