US prosecutors moved to forfeit $3.44 million in USDt allegedly tied to a crypto investment scam that tricked victims into sending Ether to wallets controlled by fraudsters. US federal prosecutors have filed a civil forfeiture action to recover roughly 3.44 million USDt tied to an alleged online crypto investment scam that targeted victims across several states. According to a Tuesday announcement from the US Attorney’s Office in Boston, the funds were linked to a scheme that persuaded victims to send cryptocurrency to wallets controlled by scammers. Authorities said they seized the USDt (USDT) in February and March 2025, and are now asking a court to authorize the permanent forfeiture of the assets. “In such fraud schemes, scammers obtain funds from victims using manipulative tactics,” prosecutors said, adding that they establish a level of trust with a victim and then entice the victim into investing in a fraudulent investment scheme. Read more
Capo, an external oracle solution used by Aave, triggered around $27 million in liquidations after a pricing glitch, but the lending platform said it is stepping in to cover the losses. A configuration error in a risk-oracle system used by crypto lending platform Aave triggered the liquidation of about $27 million in wrapped staked Ether (wstETH) positions, prompting the protocol to move to compensate affected users. In a post-mortem published Tuesday, Aave said about 10,938 wstETH worth around $27.1 million was liquidated after the protocol applied an exchange rate that was 2.85% below the live market rate for wstETH and Lido staked Ether. The issue stemmed from a mismatch between pricing parameters and timestamp data in the oracle configuration, which caused the system to calculate a maximum allowed exchange rate below the actual rate onchain. Read more