The U.S. government has launched its largest-ever seizure of cryptocurrency tied to investment fraud, filing a civil forfeiture complaint against more than $225 million in crypto allegedly laundered through a sprawling blockchain-based scam network.
The action, announced Wednesday by U.S. Attorney Jeanine Pirro and senior officials from the DOJ, FBI, and U.S. Secret Service, targets funds linked to so-called crypto confidence scams, also known as “pig butchering” schemes. According to the complaint, scammers used hundreds of thousands of transactions across complex blockchain addresses to disguise illicit proceeds and defraud victims globally.
Authorities estimate more than 400 individuals worldwide were targeted, with dozens of confirmed U.S. victims. Investigators traced the illicit funds using blockchain forensics and confirmed the operation constituted a sophisticated money laundering network.
“This is the largest crypto seizure in Secret Service history,” said Special Agent in Charge Shawn Bradstreet, noting the scam networks preyed on trust and left victims in severe financial distress.
U.S. Attorney Pirro credited President Trump and Attorney General Bondi for supporting an aggressive crackdown. “We are seizing funds from foreign criminals and returning them to the American victims they deceived,” she said.
Matthew Galeotti, head of the DOJ’s Criminal Division, warned that crypto investment fraud is a rising threat, costing Americans billions annually. “Today’s action is just the beginning,” he added.
The FBI cited more than $5.8 billion in reported losses from crypto investment scams in 2024 alone. Tether, the stablecoin issuer, was acknowledged for its assistance in tracing and freezing suspect assets.
The case signals intensifying U.S. efforts to dismantle global crypto fraud networks and recover stolen digital assets for victims.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/u-s-seizes-225-million-in-largest-crypto-scam-crackdown-to-date/