The U.S. Attorney’s Office for the District of Connecticut announced on Mar. 27 that it has recovered and forfeited more than $600,000 in cryptocurrency linked to a fraud scheme. The operation was conducted in cooperation with the Federal Bureau of Investigation and other law enforcement agencies.
This action is significant as it highlights ongoing efforts by federal authorities to address financial crimes involving digital assets, which have become increasingly common targets for fraudsters.
According to court documents, a Connecticut resident identified as “T.M.” received a letter in September 2025 claiming to be from “Ledger Security & Compliance.” The letter instructed T.M. to perform a mandatory security check on their Ledger device—a hardware wallet used for storing cryptocurrency. After following the instructions, T.M.’s device was compromised and approximately $234,000 in cryptocurrency was stolen.
Investigators traced the stolen funds through multiple wallets and seized about $600,000 worth of Tether cryptocurrency. The U.S. Attorney’s Office filed a civil forfeiture complaint alleging that these funds were proceeds of wire fraud and involved money laundering activities. On March 31, 2026, the U.S. District Court issued a decree of forfeiture.
Typically, after seizing such assets, the U.S. Attorney’s Office works with the Department of Justice’s Money Laundering, Narcotics and Forfeiture Section to return property to victims so they can obtain clear title without further legal disputes.
Assistant U.S. Attorney David C. Nelson is prosecuting this case.
More information about cryptocurrency-related fraud schemes and how to report them can be found at https://www.ic3.gov/CrimeInfo/Cryptocurrency.