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.
This action is significant as it demonstrates law enforcement’s ongoing efforts to address and recover assets from digital currency crimes that target individuals through sophisticated scams.
According to court documents, a Connecticut resident identified as “T.M.” was targeted in September 2025 by a letter claiming to be from “Ledger Security & Compliance.” The letter falsely stated that T.M.’s Ledger device required a mandatory security check. After following the instructions provided, T.M.’s device was compromised and approximately $234,000 in cryptocurrency was stolen.
Authorities including the FBI and Connecticut State Police tracked the transactions across several cryptocurrency wallets before seizing about $600,000 worth of Tether. The U.S. Attorney’s Office then filed a civil forfeiture complaint alleging that these funds were proceeds of wire fraud and involved in money laundering activities. On March 31, 2026, the U.S. District Court entered a decree of forfeiture.
“Generally, the U.S. Attorney’s Office first seeks to forfeit the cryptocurrency, then works with the Department of Justice’s Money Laundering, Narcotics and Forfeiture Section to, in many cases, return it to crime victims so that victims have clear title to the property without risk of further litigation,” said officials.
Assistant U.S. Attorney David C. Nelson is prosecuting this case.
More information on cryptocurrency fraud schemes and reporting related criminal activity can be found at https://www.ic3.gov/CrimeInfo/Cryptocurrency.