United States Targets Record $225 Million in Cryptocurrency Linked to Investment Fraud & Money Laundering

The United States Department of Justice (DoJ) has filed a landmark civil forfeiture complaint against more than $225.3 million in cryptocurrency, alleging the funds are tied to a sprawling blockchain-based money laundering network operating in support of cryptocurrency investment fraud schemes.

Filed in the District Court for the District of Columbia, the complaint claims that investigators, using blockchain analytics and advanced tracing techniques, uncovered a network that moved illicit proceeds through hundreds of thousands of transactions. These activities allegedly dispersed funds across numerous cryptocurrency wallets and accounts to obscure their origins, with the assets ultimately linked to scams known as “cryptocurrency confidence scams.”

According to the DoJ, more than 400 suspected victims were deceived into believing they were making genuine cryptocurrency investments, collectively losing millions. The FBI’s 2024 Internet Crime Report revealed that such scams resulted in more than $5.8 billion in reported losses last year alone, underlining the growing threat to investors and the wider digital asset ecosystem.

Senior officials emphasised the significance of the action. Matthew R Galeotti, Head of the Criminal Division, described it as “the latest step in protecting the public from fraudsters exploiting cryptocurrency,” warning that further enforcement is on the horizon. U.S. Attorney Jeanine Pirro for the District of Columbia stated her office is “ripping stolen funds from the hands of foreign criminals” with the aim of returning them to victims.

The case also marks a milestone for the US Secret Service (USSS), with Special Agent in Charge Shawn Bradstreet confirming it is the largest cryptocurrency seizure in the agency’s history. The USSS and FBI’s San Francisco Field Offices, working alongside private partners and cryptocurrency firm Tether, traced the illicit flows and secured the assets for eventual restitution.

Authorities have reiterated their commitment to dismantling international fraud networks and restoring stolen assets to victims, signalling that cryptocurrency-related enforcement is becoming both more aggressive and more sophisticated.

Read the press release here.