U.S. Takes Millions in Crypto to Combat Fraud
The U.S. Department of Justice (DOJ) has filed a legal request to seize around $225 million in cryptocurrency assets. According to the DOJ, these cryptocurrencies were allegedly involved in various fraudulent and illegal operations. The request for forfeiture was submitted to the Federal Court in the District of Columbia, seeking approval for the assets to be acquired by the state. Once seized, these assets will enter the U.S. Government’s cryptocurrency treasury.
The U.S. Government’s Cryptocurrency Treasury Reports indicate that over 400 victims are involved. Fraudsters masqueraded using various investment schemes to solicit cryptocurrency from individuals. The obtained crypto assets were moved across different wallets and networks to obscure their origins, a process known as “pig butchering,” a scam commonly initiated through trust-based investment proposals.
The DOJ lodged a complaint stating that the confiscated assets were either acquired unlawfully or used in the commission of crimes. If the court approves this complaint, the U.S. government will officially take possession of these cryptocurrencies. Such cases serve as significant precedents in the tracking and seizure of crypto assets.
Matthew R. Galeotti, head of the DOJ’s Criminal Division, emphasized the government’s strong stance against frauds perpetrated via crypto assets. He highlighted that such scams result in substantial economic losses for American victims. Data from the blockchain monitoring firm Chainalysis reveal that similar cryptocurrency frauds accounted for a substantial portion of illicit digital proceeds in 2024.
Authorities are continuing their efforts to reimburse victims and prevent future occurrences. Recovered assets will be returned to the victims, with any remaining portion being added to the DOJ’s cryptocurrency stockpile. Following a decision by Trump earlier this year, the sale of assets seized as criminal proceeds is now prohibited.
Investors are cautioned against sharing personal information and claims of high returns. The DOJ underscores that this case underscores the increase in both the number of victims and the total lost assets through cryptocurrencies. Investors are urged to stay informed, as the court’s ruling could have significant implications on crypto markets and regulatory developments.
