- A Nigerian Scammer posed as Steve Witkoff, the co-chair of Trump – Vance committee duped a donor into sending over $250k worth of crypto (USDT on Ethereum blockchain)
- The scammer used an archaic trick of manipulating an email address by simply changing a barely noticeable character
- According to sources, the scammer sent an email to the victim from “@t47lnaugural.com. In this scenario, the impersonator simply changed the lowercase “i” to “I” which made it look like a legitimate email address. This kind of a scam is also called “typosquatting”
- Believing the email to be a legitimate one, the victim transferred 250,300 USDT – a stablecoin pegged to the US Dollar issued by Tether to the scammer’s crypto wallet on December 26, 2024. The funds were quickly laundered through multiple wallets
FBI Recovered Over $40,000
With the help of Tether and advanced blockchain analytical tracking tools, the FBI was able to identify and seize $40,300 of the stolen USDT. The issuer of Tether USDT leveraged its technological ability to freeze and transfer the stolen assets, enabling law enforcement to recover the funds. The Department of Justice (DOJ) credited Tether for its cooperation, highlighting the importance of collaboration between law enforcement and cryptocurrency platforms in combating financial fraud.
“Impersonation scams take many forms and cost Americans billions in losses each year […] Scammers often use subtle differences to deceive you and gain your trust. Never send money, gift cards, cryptocurrency, or other assets to people you do not know personally or have only interacted with online or over the phone.”
Steven Jensen, Assistant Director, FBI Washington Field Office
DOJ Applauds Tether For Their Co-operation
The Department of Justice has credited Tether for its assistance in freezing the assets on the blockchain to help in recovering them. In June 2025, Tether was again in the news for helping the DOJ recover crypto that was stolen in pig butchering scams.
How Did Industry Experts React?
The Head of APAC Policy Chainalysis Chengyi Ong commented,
“As the political landscape increasingly favors crypto, we’re likely to see more requests for crypto donations. However, it’s crucial to understand that this type of scam isn’t limited to crypto; the ill-gotten gains could just as easily be moved as fiat currency via payment apps or bank transfers to a mule account.”
A “mule account” refers to a bank account that is used by criminals to move illegally obtained money, often as part of a larger fraud or money laundering scheme.
Wrapping Up
Crypto received its due credit for its decentralised system that enables borderless and seamless payment during US presidential elections in 2024. The Political Actions Committee raised $7.5 million to support Donald Trump’s campaign. While this is a clear indicator that the US is warming up to cryptocurrency adoption, it also signifies the risks like impersonation scams could be on the rise.
So, what should one really do? As crypto becomes more intertwined with politics, payments and emerging business cases, one must learn about the security risks and how to secure your virtual digital assets.