In a recent enforcement action out of the Middle District of Louisiana, a federal court ordered the forfeiture of nearly $200,000 in cryptocurrency connected to a scam that targeted multiple elderly victims in the United States. This case highlights the evolving landscape of digital asset fraud and underscores the importance of fraud awareness, particularly for vulnerable populations. 

The Scheme and Victim Impact

On December 15, 2025, a Final Order of Forfeiture was entered in a civil forfeiture action that formally forfeited 1.96356404 BTC and 60,139.5734 USDT (Tether) — digital currency seized from a foreign digital currency exchange. These assets were tied to offenses involving wire fraud and money laundering. 

At least four victims over the age of 70 were manipulated into surrendering their funds based on fabricated threats and dire warnings. Posing as trusted financial authorities — such as bank fraud department representatives — the scammers convinced victims that their accounts had been compromised and that drastic action was necessary to “protect” their funds. 

In one reported scenario, a victim was falsely told that she faced potential criminal charges and would avoid arrest only if she withdrew $31,000 and transferred it to a “secure” cryptocurrency wallet via a Bitcoin ATM. In another case, an individual was misled into thinking her computer had been hacked and that she needed to move $30,000 into cryptocurrency to prevent an automatic payment to an illicit website. 

These social-engineering tactics — combining fear, urgency, and impersonation — are hallmarks of advanced “crypto emergency” scams that exploit both the complexity of digital assets and the emotional responses of older adults. 

Law Enforcement Response and Restitution Path

The investigation was led by the U.S. Secret Service Cyber Fraud Task Force, with support from multiple local sheriff’s offices across Louisiana, Texas, and Minnesota. The forfeited assets are now poised to be returned to the victims as part of restitution efforts. 

What CFEs Should Know

This case presents several salient points for fraud examiners, investigators, and compliance professionals:

• Digital Assets as a Vector: Cryptocurrency continues to be leveraged by fraudsters as both a tool for deception and a mechanism for disguising the flow of illicit funds.

• Elder Fraud Tactics: Scammers frequently employ urgency and fear-based narratives to pressure victims into rapid, irreversible financial decisions — particularly by exploiting complex technologies like crypto.

• Multi-Agency Coordination: Complex digital frauds often require cross-agency cooperation, combining cyber expertise with traditional investigative resources.

• Forfeiture and Restitution Tools: Civil forfeiture remains a powerful mechanism to disrupt fraud proceeds and facilitate victim restitution in cases where digital assets are traceable.

Broader Context

Fraud targeting older Americans remains a significant concern. A recent report highlighted that older adults lost billions to various types of fraud, including cryptocurrency schemes, over a recent 12-month period, emphasizing the need for continued vigilance, education, and enforcement. 

Conclusion

The forfeiture of over $200,000 in cryptocurrency tied to an elder fraud scheme underscores the continuing innovation of fraud tactics and the critical role of coordinated law enforcement efforts. As digital assets become more prevalent in everyday financial activity, Certified Fraud Examiners and fraud professionals must remain attuned to these risks to better protect vulnerable populations and advance effective prevention and recovery strategies.