By Tiffany Williams –
BOSTON, Mass. — Federal prosecutors are seeking to recover approximately $47,000 in cryptocurrency that authorities allege is tied to an online fraud scheme in which scammers convinced victims to deposit money into cryptocurrency ATMs by falsely claiming their bank accounts had been compromised.
The U.S. Attorney’s Office announced it has filed a civil forfeiture action to recover 47,461.73111 USDT (Tether), which prosecutors allege represents proceeds from the fraud scheme. The cryptocurrency currently has an estimated value of approximately $47,000.
According to the civil complaint, one of the victims was a Ware, Massachusetts resident whose home computer became unresponsive. Prosecutors said a pop-up window directed the victim to call a customer support telephone number.
The victim then spoke with an individual who claimed to be a customer service representative but, according to the complaint, was actually a scammer.
Federal prosecutors allege the scammer told the victim that their bank account had been compromised and that, in order to “protect” their money, the victim needed to transfer the funds to the government for safekeeping.
According to the complaint, the victim withdrew money from a bank account and, following the scammers’ instructions, deposited the funds into a Bitcoin Depot brand cryptocurrency ATM located at a gas station in Ludlow, Massachusetts. Prosecutors allege the money was then transferred to the individuals behind the fraud.
Investigators later traced a portion of the funds to a cryptocurrency wallet and seized those assets in March 2026, according to the U.S. Attorney’s Office.
During the investigation, law enforcement also identified four additional victims whose funds were allegedly traced to the same cryptocurrency wallet as part of similar scams.
Federal prosecutors said it is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property through false or fraudulent pretenses. Prosecutors also noted that it is a violation of federal law to conduct a financial transaction knowing it is designed to conceal the nature, location, source, ownership or control of criminal proceeds.
The U.S. Attorney’s Office said a civil forfeiture action allows third parties to assert claims to property before it can be forfeited to the United States and returned to victims.
Federal prosecutors said this is one of several civil forfeiture actions the U.S. Attorney’s Office has filed seeking to recover cryptocurrency traced to fraud schemes targeting victims in Massachusetts.
The U.S. Attorney’s Office is encouraging anyone who believes they may have been the victim of a cybercrime, including cryptocurrency scams, tech support scams, investment scams or business email compromise fraud schemes, to contact USAMA.CyberTip@usdoj.gov.