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Trump-Linked Inaugural Scam Used to Steal $250K in Crypto, FBI Traces Some Funds

The FBI is investigating a cryptocurrency fraud case involving email spoofing and blockchain laundering

A phishing scam targeting a donor to the Trump-Vance Inaugural Committee led to the theft of over $250,000 in cryptocurrency, according to a federal complaint filed in the U.S. The FBI has recovered some of the stolen money, and a formal complaint has been filed to seize the rest of it.

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Phishing Email Spoof Led to Major Crypto Theft

According to a civil forfeiture lawsuit filed by the United States Attorney's Office, the scam began on December 24, 2024, when the victim received a bogus email purporting to be from Steve Witkoff, co-chair of the 2025 Trump-Vance Inauguration Committee. The email domain was nearly identical to the official one, a lowercase "L" was used in place of an uppercase "I" in the address, tricking the recipient.

The victim, thinking the funds were meant for inaugural purposes, transferred 250,300 USDT using the Ethereum blockchain to a wallet address included in the email. Within hours, the funds were dispersed to multiple cryptocurrency addresses in what authorities described as a "business email compromise" scam.

FBI Recovers Funds With Help From Crypto Platforms

The FBI tracked the stolen crypto through blockchain analysis and identified around $40,300 still sitting in two untouched wallets. The remaining funds were promptly distributed, with a part apparently routed to a Binance account in Nigeria associated with an individual named Ehiremen Aigbokhan.

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Cryptocurrency firms, including Binance and Tether cooperated with law enforcement by freezing accounts suspected to be holding portions of the stolen money. Tether confirmed in a statement that it assisted in the seizure and that the frozen assets were tied to the ongoing investigation.

U.S. Attorney Jeanine Pirro urged donors and crypto users to remain alert. "All donors should double and triple check that they are sending cryptocurrency to their intended recipient," she said. She added that, due to blockchain's complexity, it can be very challenging for law enforcement to recover lost money.

The incident demonstrates the growing risk of sophisticated email scams that prey on cryptocurrency donors and holders. It underscores the growing need for users to verify digital communications and exercise caution when transferring cryptocurrency, especially in response to unsolicited requests

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