Investor Defrauded by Inauguration Email Scam
Federal officials have reported a significant cryptocurrency fraud incident where an investor was defrauded of over $250,000 in USDT.ETH. The elaborate scam involved deceptive emails purporting to be from Donald Trump’s 2025 inaugural committee. The fraudster specifically impersonated Steve Witkoff, who was serving as the co-chair of the committee, to solicit funds from the unsuspecting crypto investor, highlighting a sophisticated social engineering tactic.
Impersonation and Method of Deception
The alleged scam, detailed in a complaint filed in a federal court in December 2024, involved scammers sending emails “purporting to be Steve Witkoff.” These fraudulent communications were designed to trick the victim into believing they were legitimate requests for funds related to the upcoming presidential inauguration. This method of impersonation leveraged a public figure’s association with a high-profile event to gain the victim’s trust and illicitly obtain cryptocurrency.
Victim’s Loss and Fund Distribution
According to court documents, the victim transferred over $250,000 worth of USDT.ETH cryptocurrency as instructed by the fraudulent emails. Immediately after the funds were received by the scammers, the cryptocurrency was rapidly distributed across “numerous other cryptocurrency addresses.” This included a Binance account based in Nigeria, which was linked to the name Ehiremen Aigbokhan, indicating an attempt to quickly disperse and obscure the stolen assets across various platforms and jurisdictions.
US Attorney’s Advice for Crypto Investors
In response to the incident, Washington US Attorney Jeanine Pirro issued a stern warning and advice to crypto investors. She stated, “All donors should double and triple check that they are sending cryptocurrency to their intended recipient. It can be extremely difficult for law enforcement to recoup lost funds due to the extremely complex nature of the blockchain.” This advice underscores the irreversible nature of blockchain transactions and the challenges law enforcement faces in recovering stolen digital assets.
Law Enforcement and Company Response
Following the scam, companies and digital currencies implicated in the alleged fraud, including Binance and Tether, promptly responded to requests from the FBI later that same month. These entities took swift action by freezing accounts that were found to be holding portions of the stolen funds, demonstrating cooperation with law enforcement. Federal prosecutors are now actively pursuing efforts to seize approximately $40,000 in cryptocurrency that remains untouched across two identified accounts, aiming to recover more of the illicit gains.
Technical Aspect: Business Email Compromise
Federal officials characterized the operation as a “business email compromise scam,” a common form of cybercrime. They explained that the suspect employed a deceptive tactic by manipulating email domain names to mimic the official “@t47lnaugural.com” address. This was achieved by subtly replacing an uppercase “I” with a lowercase “L” in the domain, a clever visual trick designed to deceive recipients into believing the emails were legitimate, thereby facilitating the fraudulent requests for funds.
Context of Legitimate Crypto Ventures
It is important to note that Donald Trump and Steve Witkoff, the individual impersonated in the scam, are involved in several legitimate cryptocurrency ventures. Witkoff currently serves as a special Middle East envoy for the administration. Both individuals launched World Liberty Financial alongside their sons last year, a legitimate crypto business. This context highlights how fraudsters can exploit the public association of prominent figures with legitimate digital asset projects to lend credibility to their illicit schemes.
