In a sophisticated online scam, Nigerian fraudsters successfully duped a donor into sending $250,000 in cryptocurrency by posing as high-profile U.S. political figures.
According to a statement by the U.S. Department of Justice (DOJ), the scammers impersonated Steve Witkoff, co-chair of the Trump-Vance Inaugural Committee, using a cleverly spoofed email address.
The attackers replaced the lowercase letter “i” in the legitimate domain “@t47inaugural.com” with a lowercase “l” to create a nearly identical email, “@t47lnaugural.com.”
The fake communication convinced the victim, who believed they were contributing to a political initiative, to transfer 250,300 USDT (Ethereum-based stablecoin) on December 26, 2024.
Email Spoofing Tactic Deceives Victim Amid Growing Crypto-Political Nexus
The scam email, sent just two days before the transaction on December 24, illustrates how cybercriminals are exploiting the blurred lines between political fundraising and cryptocurrency.
Prosecutors highlighted the deceptive domain name as an example of how subtle visual tricks can be used to manipulate unsuspecting donors.
Because the difference between “i” and “l” in many fonts is almost indistinguishable, even vigilant readers can be misled.
The fraud was strategically timed to align with the Trump administration’s increasing openness to cryptocurrency donations, lending an air of authenticity to the scam.
FBI Recovers Partial Funds With Help From Tether and Blockchain Tracing
While the scam led to the loss of a quarter-million dollars in digital assets, federal authorities were able to partially recover the stolen funds.
The FBI, using blockchain analytics tools, successfully traced the transactions and, with the cooperation of stablecoin issuer Tether, recovered 40,300 USDT.
The recovered funds are now undergoing civil forfeiture proceedings to compensate the victim.
The case marks another example of Tether’s growing role in assisting law enforcement, following its support in freezing $225 million in USDT in a separate “pig butchering” crypto scam just a month earlier.
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Experts Warn of Rising Political Crypto Scams Fueled by Tech and Trust
Cybersecurity and crypto policy experts warn that this case could be a harbinger of a growing trend where scammers capitalize on political events and the growing legitimacy of crypto donations.
Saravanan Pandian, CEO of crypto exchange KoinBX, described it as “a whole new minefield” in which bad actors exploit public trust, real-time events, and the irreversibility of crypto transactions.
The use of real political figures like Trump and JD Vance makes these scams especially potent.
Mostly, donors are more likely to trust and respond to seemingly official requests for funds, particularly during high-profile political campaigns.
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Crypto Rail Not the Issue: Scams Could Target Any Payment Channel
Despite the involvement of crypto, experts emphasize that the scam’s success wasn’t due to blockchain technology but rather the manipulation of human trust and timing.
Chengyi Ong, Head of APAC Policy at Chainalysis, noted that the scam was “rail-agnostic,” meaning it could have just as easily been carried out using traditional payment systems like bank transfers or mobile apps.
Still, the irreversible nature of cryptocurrency makes such scams especially dangerous.
As political engagement with crypto continues to grow, Ong and other analysts stress the urgent need for both public awareness and stricter digital communication verification practices to safeguard against similar attacks.
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