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Points of Focus
- US prosecutors seek forfeiture of 110,270 USDT tied to the theft of 33.7 BTC.
- Fake Coinbase texts allegedly gave scammers access to two wallets linked to one account.
- Investigators traced 11.2 BTC to Binance before it was converted to Monero and mostly withdrawn.
US prosecutors are seeking cryptocurrency tied to a 2023 account-takeover scheme in which fake Coinbase text messages allegedly led to the theft of 33.7 Bitcoin (BTC), then worth about $900,000, from a beneficiary and a Massachusetts family trust.
A Sept. 28 Justice Department filing seeks forfeiture of approximately 110,270 USDT seized from a Binance account linked to part of the stolen bitcoin. The action targets recovered property rather than the full 33.7 BTC taken from the victims.
Fake Coinbase texts gave access to two wallets
The beneficiary was corresponding with Coinbase about creating a separate account for the trust when fraudulent texts arrived on June 1 and June 2, 2023, according to the complaint. The messages allegedly induced the victim to provide login, password and other details that allowed access to both wallets.
The beneficiary and trust had separate wallets linked to one Coinbase account. Together they held 33.7 BTC, including 28.5 BTC in the Trust wallet. Prosecutors allege the full balance was then transferred to several wallets without the owners’ consent.
The texts arrived while the beneficiary was already communicating with Coinbase about the trust account. Coinbase security guidance says its staff will never ask customers for passwords or two-step verification codes.
11.2 BTC traced to Binance before Monero conversion
FBI investigators traced 11.2 BTC through six deposits to a Binance account between June 5 and June 15, 2023. The account had been opened through Binance Spain on May 25 using identification that Spanish authorities later said contained an unassigned number.
Binance records also showed about 15 approved devices accessing the account between May and November 2023. Investigators said the stolen BTC was converted almost immediately into Monero.
About 75% of the converted XMR was successfully withdrawn before two attempts to move the remaining 758.552588 XMR were rejected. Binance later froze the account at the FBI’s request. After an October 2024 seizure warrant, Binance transferred approximately 110,270 USDT to a government-controlled wallet on Aug. 3, 2026.
US forfeiture case targets part of stolen crypto
The forfeiture action covers funds tied to the traced Binance account, not all 33.7 BTC stolen in 2023. The DOJ press release values the seized cryptocurrency at about $47,000, while the complaint identifies 110,270 USDT and describes each USDT as worth approximately $1. The filings don’t explain the discrepancy.
The allegations haven’t been proven at trial. Claimants can challenge the forfeiture before the property is forfeited and potentially returned to victims. Court papers set a deadline of 60 days after first publication of notice or 35 days after receipt of direct notice, whichever comes earlier.
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