Forfeiture Order Finalizes Recovery of Bitcoin and Tether From Elder Fraud Scheme
A federal court action advanced efforts to recover funds lost in a fraud scheme. The U.S. Attorney’s Office for the Middle District of Louisiana announced on Dec. 18 the forfeiture of seized cryptocurrency tied to an elderly-targeted scam, enabling the return of assets to victims.
The announcement states that U.S. District Judge Brian A. Jackson signed a final civil forfeiture order on Dec. 15 covering cryptocurrency linked to wire fraud and money laundering. The Attorney’s Office detailed:
A final order of forfeiture was signed in a civil forfeiture action which formally forfeited 1.96356404 BTC and 60,139.5734 USDT as digital currency involved in wire fraud and money laundering offenses.
“This bitcoin and USDT, also known as tether, were seized from a wallet address in the name of an Indian national, which wallet address was held at a digital currency exchange located in the Seychelles, Africa. The combined forfeited bitcoin and tether are worth over $200,000,” the announcement adds.
Authorities indicated the assets are now eligible for the U.S. Department of Justice (DOJ) to begin restitution procedures for multiple victims. Investigators determined that at least four elderly individuals were manipulated through a cryptocurrency emergency scam relying on impersonation, urgency, and fabricated threats to compel rapid financial decisions.
Further details describe how all four victims, each over the age of 70, followed instructions to withdraw large sums of cash from personal bank accounts, deposit the money into bitcoin ATMs, and transmit the funds to wallet addresses controlled by the perpetrators. Two victims lived in Louisiana, while the others resided in Texas and Minnesota. In one incident, a victim was falsely told her bank account was hacked and associated with criminal material, then threatened with arrest unless she deposited $31,000 into a bitcoin ATM. Another victim received fraudulent warnings on her laptop and was directed to move $30,000 through two ATM transactions of equal size.
The U.S. Secret Service Cyber Fraud Task Force coordinated with multiple parish and county sheriff’s offices across four states to trace the digital transactions and identify wallet flows. Prosecutors emphasized that cryptocurrency emergency scams often exploit fear and confusion, particularly among older adults, while federal and local agencies continue strengthening training, investigative tools, and interagency coordination through the Department of Justice’s Elder Justice Initiative.
FAQ ⏰
- How much cryptocurrency was forfeited in the Louisiana fraud case?
Federal authorities forfeited 1.96356404 BTC and 60,139.5734 USDT worth over $200,000. - Who were the primary victims of the crypto emergency scam?
At least four victims over age 70 were targeted across Louisiana, Texas, and Minnesota. - How did scammers obtain the victims’ funds?
Victims were instructed to withdraw cash and deposit it into bitcoin ATMs tied to fraud wallets. - What happens next with the seized bitcoin and USDT?
The Department of Justice can now begin restitution procedures for the affected victims.
