US Prosecutors Seek Forfeiture of 110,270 USDT Linked to Coinbase Account Scam
According to Cointelegraph, the cryptocurrency was linked to a scam in which fraudsters allegedly used text messages to obtain information that gave them access to the victim’s account. The U.S. Attorney’s Office for the District of Massachusetts filed a civil forfeiture action on Sept. 28, 2026, seeking to recover the digital assets.
Prosecutors Trace Funds From Coinbase Account
The U.S. Department of Justice said the victim had been communicating with Coinbase by email when they received fraudulent text messages purporting to be from the cryptocurrency exchange. The messages allegedly induced the victim to provide login, password and other account information.
The information was then allegedly used to access the victim’s Coinbase account, from which funds were removed without authorization. Prosecutors said some of the assets were subsequently traced to a cryptocurrency account at Binance and seized in August 2026.
The assets named in the forfeiture action consist of approximately 110,270 USDT. The Justice Department estimated the cryptocurrency's value at approximately $47,000 at the time of its announcement.
Civil Forfeiture Proceedings Underway
The case is being pursued as a civil forfeiture action rather than as a criminal prosecution against a named individual. Under the process, third parties claiming an interest in the property can assert their claims, which must be resolved before the assets can ultimately be forfeited to the United States.
Prosecutors allege that the cryptocurrency represents proceeds connected to wire fraud. The Justice Department emphasized that the allegations contained in the forfeiture complaint have not been established as facts by a court.
The complaint identifies the seized cryptocurrency as being held in a Binance account. Court records show the case was filed in the U.S. District Court for the District of Massachusetts on Sept. 28 under case number 1:26-cv-14423.
Recovery of Cryptocurrency From Fraud Cases
The Massachusetts U.S. Attorney’s Office said the action is among several civil forfeiture cases it has filed involving cryptocurrency traced to fraud schemes targeting victims in the state. If forfeiture becomes final, the recovered assets may be eligible to be returned to victims through the applicable process.
The case also demonstrates how investigators can pursue cryptocurrency after funds have been removed from an exchange account. Here, prosecutors said the assets were traced to another cryptocurrency exchange and seized before the forfeiture proceeding was filed.
The civil case will now determine whether the 110,270 USDT can ultimately be forfeited to the United States and what claims, if any, third parties may assert over the cryptocurrency.
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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