$600K in Cryptocurrency Recovered from Fraud Scheme in Connecticut

U.S. Attorney's Office, FBI, and State Police Trace and Seize Stolen Funds

Apr. 1, 2026 at 8:51pm

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The U.S. Attorney's Office for the District of Connecticut, working with the FBI and Connecticut State Police, has recovered and forfeited over $600,000 in Tether cryptocurrency that was stolen through a wire fraud scheme. The funds were traced through multiple cryptocurrency wallets after a Connecticut resident was targeted in a scam involving a fake letter claiming to be from 'Ledger Security & Compliance' about a mandatory security review of the victim's cryptocurrency device.

Why it matters

This case highlights the ability of law enforcement to track and seize cryptocurrency obtained through criminal means, even when it has been moved through multiple wallets. It serves as a warning to fraudsters that their ill-gotten gains can and will be recovered, and underscores the importance of cryptocurrency users taking security precautions to protect their digital assets.

The details

According to court documents, in September 2025 a Connecticut resident identified as 'T.M.' received a letter claiming to be from 'Ledger Security & Compliance' stating that his Ledger cryptocurrency storage device needed a mandatory security review. When T.M. followed the instructions in the letter, the fraudsters were able to compromise his device and steal around $234,000 worth of cryptocurrency. The FBI and Connecticut State Police then traced the stolen funds through various cryptocurrency wallets and were able to seize around $600,000 worth of Tether, a form of cryptocurrency. The U.S. Attorney's Office then filed a civil forfeiture complaint, alleging the Tether was purchased with the proceeds of wire fraud and money laundering.

  • In September 2025, the Connecticut resident 'T.M.' received the fraudulent letter.
  • The FBI and Connecticut State Police traced the stolen cryptocurrency through multiple wallets.

The players

U.S. Attorney's Office for the District of Connecticut

The U.S. Attorney's Office that worked with the FBI and state police to recover and forfeit the stolen cryptocurrency.

Federal Bureau of Investigation (FBI)

The federal law enforcement agency that assisted in tracing and seizing the stolen funds.

Connecticut State Police

The state law enforcement agency that worked with the FBI to recover the stolen cryptocurrency.

T.M.

The Connecticut resident who was the victim of the wire fraud scheme and had around $234,000 in cryptocurrency stolen from his Ledger device.

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What they’re saying

“No matter how much they profit off their fraud schemes, all that money can be recovered and forfeited by law enforcement.”

— David Sullivan, Interim U.S. Attorney for the District of Connecticut

What’s next

The U.S. Attorney's Office will now work with the U.S. Department of Justice's Money Laundering, Narcotics and Forfeiture Section to return the forfeited cryptocurrency to the original crime victim, T.M., so he can have clear title to the property without risk of further litigation.

The takeaway

This case demonstrates the ability of law enforcement to track and seize cryptocurrency obtained through criminal means, even when it has been moved through multiple wallets. It serves as a warning to fraudsters that their ill-gotten gains can and will be recovered, and underscores the importance of cryptocurrency users taking security precautions to protect their digital assets.