US Justice Department Seizes $225M in Cryptocurrency Linked to Massive Investment Fraud & Money Laundering Scheme

In a major crackdown on digital asset crime, the United States Department of Justice (DoJ) has filed a civil forfeiture complaint to seize over $225 million in cryptocurrency, tracing the funds to a vast blockchain-based investment fraud and money laundering network. The complaint, lodged in the District Court for the District of Columbia, represents the largest cryptocurrency seizure in the history of the US Secret Service.

The operation marks a significant escalation in US law enforcement's response to so-called "cryptocurrency confidence scams" – online investment frauds in which unsuspecting victims are manipulated into transferring large sums of crypto under the illusion of legitimate investment opportunities. Using blockchain analysis and advanced investigative techniques, authorities determined that the funds were routed through hundreds of thousands of transactions, designed to obscure their illicit origin and ownership.

According to the complaint, the fraud network exploited a sophisticated laundering infrastructure to distribute stolen crypto assets across a web of addresses and exchange accounts, making asset recovery particularly challenging. More than 400 suspected victims were identified as part of the investigation, many of whom experienced substantial financial loss.

Assistant Director Jose A Perez of the FBI Criminal Division commented:

The forfeiture of these illicit funds is a powerful tool in the FBI’s toolbox to stop the fraudsters who are operating online from stealing from the American people. The FBI will not standby while these criminals target unsuspecting victims who believe they are making legitimate investments.

Special Agent in Charge Shawn Bradstreet of the US Secret Service (USSS) San Francisco Field Office confirmed that the $225.3 million seizure is the largest of its kind in agency history. He warned that these scams often “prey on trust” and result in “extreme financial hardship for the victims.”

The FBI’s Internet Crime Complaint Center (IC3) reported a staggering $5.8 billion in cryptocurrency investment fraud losses in 2024 alone, highlighting the growing scale and impact of such cyber-enabled crimes.

Matthew R Galeotti, Head of the DoJ Criminal Division, reiterated the Department’s commitment to pursuing justice:

Today’s civil forfeiture complaint is the latest action taken by the Department to protect the American public from fraudsters specialising in cryptocurrency-based scams. Our investigators and prosecutors are relentlessly pursuing these scammers and their ill-gotten gains.

Jeanine Pirro, US Attorney for the District of Columbia, added that her office, backed by the Trump Administration and Attorney General Bondi, is taking a lead role in fighting cryptocurrency fraud and working towards restitution for victims.

The DoJ also thanked Tether for its proactive cooperation in the investigation. Legal proceedings are being handled by the Justice Department’s Computer Crime and Intellectual Property Section, alongside Assistant US Attorneys from the District of Columbia.

Read the press release here.