DOJ Seeks $47K in Crypto from ATM Fraud Scheme

Federal prosecutors are seeking to recover approximately $47,000 in USDT cryptocurrency from five victims of a technology-support and government-impersonation fraud scheme.

The case highlights expanding efforts to recover digital assets after scammers convert victims' cash through cryptocurrency ATMs.

A Ware, Massachusetts resident became a target after her computer stopped responding and displayed a pop-up directing her to call customer support. The person answering claimed her bank account had been compromised and instructed her to transfer the money to the government for safekeeping.

The victim withdrew funds from their bank account and deposited them into a Bitcoin Depot brand cryptocurrency ATM at a gas station in Ludlow, Massachusetts. Money deposited through the Ludlow machine moved to the perpetrators, while investigators later traced part of the proceeds to a cryptocurrency wallet.