Key Insights:
- As per the crypto news, played a material role in large-scale fraud in 2025, with the DOJ charging 265 defendants and targeting schemes totaling over $16 billion.
- High-profile crypto investment frauds, such as the $9.4 million Wolf Capital case, highlight risks to retail investors.
- Lawmakers are responding with proposed legislation like the SAFE Crypto Act and calls to criminalize unlicensed crypto operations to close regulatory gaps.
In the latest crypto news, U.S. authorities reported a record‐high year for cryptocurrency-related fraud.
On Jan. 23, 2026, the Justice Department’s Criminal Division disclosed in its 2025 fraud report that prosecutors charged 265 individuals with schemes involving digital assets, with aggregate intended losses exceeding $16 billion.
That total more than doubled 2024’s losses. For context, the FBI’s 2024 Internet Crime Report noted reported losses from crypto investment fraud of about $6.5 billion, underscoring how rapidly illicit use of digital currency is growing.
Crypto News: DOJ Highlights Crypto-Linked Fraud Cases
In its Year-in-Review summary, the DOJ highlighted several high-profile cases to illustrate crypto’s role in scams.
In one Medicare-fraud conspiracy, defendants allegedly ran a $1 billion graft scheme that bilked over $600 million from elderly patients – authorities later seized roughly $7.2 million in bank accounts and cryptocurrency.
Prosecutors also noted the Jan. 2026 crypto news about the sentencing of Travis Ford, former CEO of Wolf Capital. He admitted running a 547%-return crypto investment fraud that raised about $9.4 million from some 2,800 investors.
These busts came amid a general “aggressive” enforcement climate. As the DOJ Criminal Division tweeted, “America First means zero tolerance for fraud,” referring to its year-long effort.
Overall, digital assets proved to be “embedded in traditional fraud schemes,” the report said. These cases are part of a broader crackdown.
In the 2025 takedown of health-care fraud (the largest ever), 324 defendants faced charges for schemes totaling $14.6 billion in intended losses, with authorities seizing over $245 million in cash, vehicles, and crypto.
The DOJ’s message is that cryptocurrency is now treated like other illicit assets (cash, cars, etc.) when it comes to fraud enforcement.
The sharp rise in charges matches industry crypto news data: the FBI reported total Internet crime losses climbed about 33% in 2024 (to $16 billion), with crypto market scams a major driver.
A crypto expert said, “The most important shift right now is speed.” The comment came as the AI tools enable scams to “move” far faster.
Crypto Market Faces Regulatory Scrutiny
This law enforcement push comes as legislators and regulators turn their focus to crypto. In early 2026, Congress introduced the bipartisan SAFE Crypto Act to create a federal task force against online crypto scams.
New York’s attorney general has urged states to criminalize unlicensed crypto operations, warning of a “$51 billion criminal economy” lurking in regulatory blind spots.
Together, these moves signal that regulators now see digital tokens as part of the financial infrastructure. However, an expert has warned, saying that the crypto is regarded as “systemic financial plumbing” for fraud.
In practice, that means enforcement will target money-laundering networks, hacking tools, and AI-driven schemes involving cryptocurrency, rather than speculators trading on price swings.
For the crypto market, heightened enforcement adds a layer of risk – especially for firms and exchanges. Major cryptocurrencies like Bitcoin and Ether are not direct targets of these actions, but trading platforms and DeFi services may face tougher compliance demands.
In crypto news, some market analysts say this scrutiny could ultimately benefit the sector by weeding out bad actors and clarifying rules.
Others caution that aggressive prosecutions might spook investors in the near term. At the very least, industry participants will be watching how asset prices and volumes respond.
In the past, enforcement of crypto news has sometimes led to modest drops in cryptocurrency prices, as investors worry about contagion. But this DOJ report is not about market manipulation; it is a reminder that crypto is firmly on regulators’ radar.