US DOJ Recovers $40,300 in Crypto from Trump Inauguration Scam with Tether‘s Help
In a meaningful victory for law enforcement, the U.S. Department of Justice (DOJ) has successfully recovered $40,300 in cryptocurrency pilfered from the Trump-Vance inaugural committee. This recovery highlights the increasing effectiveness of blockchain monitoring and the growing collaboration between law enforcement and cryptocurrency firms like Tether in compensating victims of crypto-related fraud.
FBI Recovers Funds from Inauguration Crypto Scam
The FBI successfully tracked and recovered $40,300 worth of cryptocurrency that was stolen through a business email compromise scam targeting potential donors to the Trump-Vance inaugural committee.U.S. Prosecutor Jeanine Ferris Pirro announced the civil forfeiture demand for 40,353 USDT.eth, which had been fraudulently obtained from victims who believed they were making legitimate political donations.
The perpetrators impersonated Steve Witkoff, co-chair of the Trump-Vance inaugural committee, using deceptive email addresses to trick victims into sending cryptocurrency payments. The scam exploited a subtle difference in email domains, substituting a lowercase “i” for a lowercase “l” (e.g., @t47lnaugural.com instead of the correct @t47inaugural.com).
On December 24, 2024, victims received phishing emails instructing them to deposit funds into a cryptocurrency wallet. Two days later, a victim deposited 250,300 USDT.eth, believing the funds would support the inaugural committee. The stolen cryptocurrency was then quickly laundered through multiple cryptocurrency addresses within a mere two hours.
Did You No? The FBI’s Internet Crime Complaint Center (IC3) provides resources for reporting various types of cybercrime, including cryptocurrency scams.
Tether’s Cooperation and Law Enforcement Partnerships
The Department of Justice specifically acknowledged Tether’s assistance in facilitating the asset transfer during the recovery process. This collaboration underscores the growing partnership between government officials and cryptocurrency companies in combating digital crime. Tether’s involvement in asset recovery operations comes as the company navigates competition from Circle’s USDC in the stablecoin market.
While USDC once dominated stablecoin transactions, tether’s USDT has been gaining ground. According to Bitpay data, USDC represented 85% of stablecoin transactions in January 2024, compared to Tether’s 13% market share. However, by may 2025, USDT transactions had increased to 43%, while USDC fell to 56%. As of March 2025, tether’s USDT began to exceed 70% of the stablecoin volume processed by Bitpay, indicating a growing preference among merchants and clients [1].
| Stablecoin | January 2024 (Bitpay) | May 2025 (Bitpay) | March 2025 (Bitpay) |
|---|---|---|---|
| USDC | 85% | 56% | < 30% |
| USDT | 13% | 43% | > 70% |
Preventing Cryptocurrency Scams: A Word of Caution
FBI Deputy Director Steven J.Jensen has warned that identity impersonation scams cost Americans billions of dollars annually.He emphasized the importance of carefully verifying email addresses, website URLs, and the spelling of messages. Prosecutor Pirro echoed this sentiment, urging donors to double-check recipients before sending cryptocurrency.
Law enforcement officials highlight the ongoing challenges in tracing stolen digital assets across multiple cryptocurrency wallets. They advise against sending money, gift cards, cryptocurrencies, or other assets to individuals contacted solely through online or phone interactions.
Pro Tip: Enable two-factor authentication on all your cryptocurrency accounts for an added layer of security.
The involvement of Tether in this case demonstrates the industry’s increasing willingness to assist victims in recovering stolen cryptocurrencies through legitimate legal channels.
Understanding Cryptocurrency Scams: An Evergreen Viewpoint
Cryptocurrency scams are a growing concern in the digital age. Scammers exploit the anonymity and complexity of cryptocurrency transactions to defraud individuals and organizations. These scams range from phishing schemes and investment fraud to romance scams and business email compromise. The recovery of funds in the Trump inauguration scam highlights the importance of vigilance and collaboration in combating these crimes.
The increasing cooperation between law enforcement and cryptocurrency companies like Tether is a positive advancement. By working together, they can improve the tracing and recovery of stolen assets, as well as educate the public about the risks of cryptocurrency scams. As the cryptocurrency market continues to evolve, it is indeed crucial to stay informed and take proactive steps to protect yourself from fraud.
Frequently Asked Questions About Cryptocurrency Scams
Do you have any experiences with cryptocurrency scams you’d like to share? What steps do you take to protect your digital assets?
Disclaimer: This article provides information for general knowledge and awareness purposes only.It does not constitute financial or legal advice. Consult with a qualified professional before making any decisions related to cryptocurrency investments or financial matters.
