US DOJ Seeks $47k USDT Recovery in Crypto ATM Fraud Case

The U.S. Department of Justice filed a civil forfeiture action to recover 47,461 USDT linked to five victims defrauded via cryptocurrency ATMs, highlighting ongoing regulatory scrutiny on unhosted transactions.

Woofun AI reports that the U.S. Department of Justice initiated a civil forfeiture proceeding to seize 47,461.73111 USDT, valued at approximately $47,000, stemming from a coordinated fraud scheme. Prosecutors allege that scammers tricked victims, including a Massachusetts resident, into withdrawing cash and depositing it through cryptocurrency ATMs after fake support alerts claimed their accounts were compromised. Investigators traced the funds to a single wallet and identified four additional victims targeted by similar tactics.

Separately, the U.S. House of Representatives introduced the Stop Crypto ATM Scams Act on June 11. The legislation proposes a $2,000 daily transaction limit and a $10,000 total deposit cap for new customers within their first 14 days. It also mandates that cryptocurrency ATM operators display fraud warnings, establish refund procedures, and adhere to stricter anti-money laundering and record-keeping requirements.