Federal prosecutors have revealed the seizure of over $40,000 in cryptocurrency from scammers who posed as representatives of the Trump-Vance Inaugural Committee. According to court filings, the scheme began when fraudsters sent an email on December 24, 2024, that “appeared to come from Steve Witkoff, co-chair of the Trump-Vance Inaugural Committee.” Using a nearly identical domain name to the official address, the perpetrators convinced a donor to wire more than $250,000 in Tether stablecoin, believing the funds were a legitimate contribution.
Investigators said the stolen funds were swiftly routed through multiple crypto wallets to obscure their trail. The Department of Justice emphasized that such impersonation scams have become increasingly sophisticated, preying on political supporters and exploiting the complexity of digital payments.
FBI Traces Laundered Tether, Warns Public of Crypto Fraud
Special agents from the FBI leveraged blockchain forensic tools to trace the movement of the funds and ultimately recover $40,300 worth of the stolen Tether. Prosecutors have filed a civil forfeiture action to return the seized assets to the victim.
“Impersonation scams take many forms and cost Americans billions in losses each year,” said Steven Jensen, Assistant Director in Charge of the FBI Washington Field Office. He cautioned the public:
“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.”
The announcement comes against the backdrop of growing political adoption of digital currencies. In May 2024, former President Donald Trump announced his campaign would accept crypto donations, launching an official fundraising page supporting Bitcoin, Ethereum, Dogecoin, and other tokens.
Tether Applauded for Cooperation with Investigators
In a statement accompanying the seizure, the Justice Department credited Tether for its decisive role in helping law enforcement freeze the stolen funds. Officials noted that the company “assisted law enforcement in freezing and transferring the frozen assets.”
Tether has become a recurring partner in digital asset enforcement. In June, the federal agency acknowledged the company for “helping seize about $225 million in USDT tied to a massive ‘pig butchering’ scam” that defrauded victims across multiple countries.
Additionally, in a separate incident, the DOJ filed a complaint in May seeking to seize over $24 million in cryptocurrency from a Russian national accused of developing malware used to steal funds from victims globally.
Quick Facts
- U.S. prosecutors seized over $40,000 in stolen crypto from scammers impersonating Trump inaugural committee officials.
- “Impersonation scams take many forms,” said the FBI, urging vigilance in verifying sender identities.
- Tether assisted authorities in freezing and recovering the stolen funds.
