USDT Payment Fraud Case
Case Overview:
Mr. Wang, a Chinese-American residing in San Francisco, is a freelancer who frequently uses cryptocurrency for cross-border payments. In early 2023, he purchased a high-end laptop from an online marketplace. The seller required payment in USDT. Following the seller's instructions, Mr. Wang transferred $3,500 in USDT to the wallet address provided. However, after the payment, the seller failed to deliver the laptop and stopped responding to Mr. Wang’s messages. A few days later, Mr. Wang discovered that the seller had blocked him and deleted their account on the platform. Realizing he had likely been scammed, Mr. Wang immediately took action.
Legal Response:
Initial Communication and Investigation
Mr. Wang contacted our law firm promptly. After a thorough investigation, we found that the wallet address used by the seller was newly registered and had multiple small transactions within a short period, indicating its potential use in various scams. Additionally, the seller had operated under different virtual identities across multiple platforms.
Reporting to Authorities
We advised Mr. Wang to file a report with the Federal Bureau of Investigation (FBI), providing all relevant evidence, including transaction records, communication logs, and platform screenshots. The FBI initiated an investigation and collaborated with law enforcement agencies in other countries to trace the funds and identify the suspects.
Cross-Border Recovery and Cooperation
Since the case involved multiple countries and jurisdictions, the FBI worked closely with law enforcement agencies in the UK, Canada, Singapore, and other regions. With coordination through Interpol, international law enforcement shared intelligence, gradually narrowing down the suspects' locations.
Litigation and Fund Recovery
On behalf of Mr. Wang, we promptly filed a civil lawsuit seeking compensation for his losses. Our legal team gathered substantial evidence, including the platform's fraudulent marketing materials, witness testimonies from other victims, and transaction records from the marketplace.
Case Outcome:
In the civil lawsuit, the court ruled that the fraudulent platform and its primary operators must compensate Mr. Wang and other victims for their full losses, along with additional penalties. Furthermore, several suspects were convicted of fraud, money laundering, and related charges, receiving prison sentences.
