DOJ moves to seize $47K in crypto tied to ATM fraud

Federal prosecutors filed a civil forfeiture complaint on July 31 seeking 47,461.73111 USDT-about $47,000-linked to payments from five victims who were directed to deposit cash at cryptocurrency ATMs after a tech-support and government-impersonation scheme.

Officials traced deposits at a Bitcoin Depot kiosk at a gas station in Ludlow, Massachusetts, to a cryptocurrency wallet that ultimately held the USDT. Prosecutors describe one Ware resident who saw a computer warning, called a bogus support number and was then told by callers posing as government officials that her bank account had been compromised and funds needed to be transferred for safekeeping. At the callers’ direction she withdrew money from her bank and deposited it at the Ludlow machine.

Investigators followed transactions from the kiosk to the perpetrators and seized part of the proceeds in March after tracing funds to an identified wallet. Four other victims’ payments were later linked to the same wallet address, the filing notes.

The forfeiture complaint asks a court to order seizure of the specific USDT amount tied to the five payments. The filing notes third parties may file claims in court to contest ownership, and that recovered cryptocurrency could be returned to victims if valid claims are resolved.

The Justice Department described the flow of funds: “At the direction of the scammers, the victim withdrew funds from their bank account and deposited them into a Bitcoin Depot brand cryptocurrency ATM at a gas station in Ludlow, Mass.” The U.S. Attorney’s Office said the complaint is among several civil forfeiture actions in Massachusetts targeting cryptocurrency traced to fraud schemes.

On June 11, lawmakers introduced the Stop Crypto ATM Scams Act in the House. The proposed bill would require operators to post prominent fraud warnings, impose a $2,000 daily transaction limit and a $10,000 deposit cap for new customers during their first 14 days, and strengthen anti-money-laundering controls and recordkeeping. Congress has not enacted the bill.

Federal agencies have reported increased losses tied to crypto-ATM fraud. FBI figures cited in filings show Americans lost more than $333 million to crypto ATM scams in 2025. The Treasury Department’s Financial Crimes Enforcement Network has urged operators to monitor suspicious transactions and improve compliance programs. Separate enforcement actions have imposed fines on operators that failed to maintain required compliance systems.

The July 31 forfeiture follows other recent actions in the district. In March, prosecutors sought about $3.4 million in cryptocurrency linked to an online investment fraud scheme and roughly $327,829 in crypto tied to an online romance fraud; filings said investigators traced funds through intermediary wallets and into USDT before seizing them.