The U.S. Department of Justice has credited stablecoin issuer Tether for helping recover $40,300 in stolen crypto tied to a scam that impersonated the Trump-Vance Inaugural Committee.
According to the July 2 release, the scam occurred in December 2024, when impersonators tricked a political donor into sending $250,300 in USDT (USDT) on Ethereum by posing as the co-chair of the Trump-Vance committee.
The scammers used a lookalike email address to make the fraudulent request, swapping an “I” for a lowercase “L” in the email address to deceive the victim into thinking the request was legitimate. Thinking it was real, the donor fell for the scheme and sent the funds.
Upon receipt, the scammers moved the assets through several wallets within hours. However, authorities traced the transactions and successfully recovered $40,300.
In the announcement, the Justice Department specifically acknowledged stablecoin issuer Tether for aiding in the recovery of the funds.
“The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets,” the filing read.
The latest case adds to Tether’s track record of working with law enforcement to freeze and recover illicit funds. In June, the DOJ credited the company for assisting in the takedown of a $225 million crypto pig-butchering scheme. The firm has also been repeatedly praised by multiple agencies for its swift action in freezing suspicious assets and supporting investigations.
Meanwhile, rival stablecoin issuer Circle is facing scrutiny over its handling of similar abuse. Earlier this week, on-chain investigator ZachXBT accused the firm of turning a blind eye toward the growing use of its stablecoin USDC by North Korea-linked hackers and malicious actors
ZachXBT raised questions over Circle’s compliance standards, stating that despite substantial wallet flows tied to sanctioned actors, it has failed to investigate or freeze the wallets involved.
While Tether was once the target of criticism for its loose compliance practices, its growing cooperation with law enforcement suggests the firm is now taking a more proactive and compliant approach.
