Cleveland, Ohio – Federal prosecutors in Ohio have filed a civil complaint in forfeiture against more than $325,000 worth of cryptocurrency suspected to be tied to a fraudulent investment scheme. The case involves a Trumbull County man and his sister, who together lost more than $1 million of their personal savings.
According to the United States Attorney’s Office for the Northern District of Ohio, the complaint—filed on August 27, 2025—seeks to forfeit 325,060 Tether (USDT) tokens, a form of digital currency tethered to the U.S. dollar. The tokens were traced back to the fraudulent operation after a months-long federal investigation.
A Fake Text Message Sparked the Scam
Court documents revealed that the scheme began on or around November 24, 2024, when an elderly man from Bristolville, Ohio, received a text message from an unfamiliar number looking for someone named “Zach.” The man responded, and what followed was a months-long manipulation effort by the scammer, who posed as a woman with the Telegram username “Shaw Goddess.”
Building trust through regular communication, the scammer presented herself as a successful cryptocurrency investor. Encouraged by her false assurances, the victim opened a Crypto.com account to begin investing, as she instructed. When the platform imposed purchasing limits, the scammer convinced him to open another account with Strike.com, another cryptocurrency exchange.
The man ultimately transferred over $1 million to both accounts, then funneled his digital assets into what he believed was an investment platform—one that was in fact fraudulent. Tragically, the victim’s sister was also pulled into the scam and invested more than $600,000 of her own money.
Red Flags and Realizations
Problems began to arise when both siblings attempted to withdraw money. The man was informed that his funds were locked and inaccessible, while his sister was told she needed to pay a 10% tax upfront to access her balance. Alarmed by these inconsistencies, particularly given his understanding of tax procedures, the man grew suspicious. He soon realized that he and his sister had been duped.
Following his report to the FBI’s Internet Crime Complaint Center, federal authorities began investigating. By analyzing the blockchain—a digital ledger that records all cryptocurrency transactions—investigators tracked approximately $200,000 in stolen funds to a wallet on the Tron blockchain. These assets were later converted into Tether (USDT).
Tether Freezes Funds and Federal Authorities Step In
On December 31, 2024, Tether Limited, Inc. froze the digital wallet containing the suspicious funds. At the time, the wallet held exactly 325,060 USDT, valued at the same amount in U.S. dollars due to the 1:1 tethering. A federal seizure warrant was issued on March 20, 2025, allowing Tether Limited to transfer the tokens into a wallet controlled by U.S. law enforcement.
The civil complaint now seeks the legal forfeiture of the USDT tokens. It also alleges that any additional funds within the same cryptocurrency address—beyond what was stolen from the two known victims—may have originated from other fraudulent schemes and are potentially tied to money laundering activities.
Authorities emphasized that the forfeiture complaint represents allegations and that the U.S. government must prove its case by a preponderance of evidence. Should the court rule in favor of the United States, the government plans to return the recovered funds to the victims.
