US DOJ Moves to Seize $225 Million in Record Crypto Fraud Case
The United States Department of Justice has initiated a civil forfeit case to take more than $225 million in digital assets connected to a massive, worldwide cryptocurrency investment scams network. The action represents the largest single cryptocurrency seizure in the history of the U.S. Secret Service.
The complaint, filed on June 18 in the U.S. District Court for the District of Columbia, targets funds that investigators traced through numerous blockchain transactions designed to obscure their illicit origins. The operation marks a significant move by the federal government to disrupt organized cybercrime rings and recover funds for defrauded investors.
Details of the Advanced Scheme
According to the Justice Department, the seized funds were part of an advanced, blockchain-based laundering operation. The criminal network allegedly used ‘pig butchering’ scams, where fraudsters gained victims’ trust online before convincing them to invest in deceptive cryptocurrency platforms. Victims were misled by false promises of high returns, unknowingly transferring their funds to scammers operating from overseas.
Police officials stated that the network then laundered the stolen funds through a complex maze of cryptocurrency addresses and accounts to conceal the source. The investigation has identified over 400 potential victims worldwide.
Interagency Cooperation Led to Seizure
The successful tracking and seizure of the assets was the result of a coordinated investigation led by the U.S. Secret Service and the Federal Bureau of Investigation (FBI). Stablecoin provider Tether played a crucial role in freezing the $225.3 million in USDT, aiding in securing the funds before further distribution.
‘Today’s civil forfeiture complaint is the latest action taken by the Department to protect the American public from fraudsters specializing in cryptocurrency-based scams,’ said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division.
U.S. Attorney for the District of Columbia, Jeanine Pirro, highlighted her office’s commitment to restoring stolen funds to victims. The public is urged to report any suspicious crypto scams to the authorities.
Disclaimer: The information provided in this article is for informational and educational purposes only. It does not constitute financial advice. Readers are advised to exercise caution before engaging in any financial activities.
