Officials Recover $225 Million in Crypto Stolen from Americans Through Scam Targeting Hundreds
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Officials have seized more than $225 million in cryptocurrency that prosecutors state was taken from Americans as part of an international scam targeting hundreds, according to the Justice Department. Many Americans, along with an estimated 400 individuals worldwide, fell victim to so-called ‘cryptocurrency confidence’ scams, where they were misled into making fraudulent investments.
The FBI and the Secret Service are now collaborating to identify the victims and ensure the return of their funds. These fraudulent schemes, also known as ‘pig butchering’ scams, have been on the rise, with scammers increasingly using AI to impersonate others or create realistic content.
This recent seizure marks the largest ever recovery of funds associated with crypto frauds, as stated by federal authorities. FBI Special Agent in Charge Sanjay Virmani emphasized the devastating consequences these cryptocurrency investment scams can have on victims, extending far beyond just financial losses.
Prosecutors revealed that the scammers employed a sophisticated blockchain-based money laundering network to carry out hundreds of thousands of transactions. The stolen funds were then dispersed across multiple cryptocurrency accounts to conceal their origin.
While the stolen funds were traced back to a scam compound in the Philippines, no specific individuals were named by the authorities. These compounds are described as locations dedicated to perpetrating cryptocurrency confidence scams and laundering illicit proceeds, often involving trafficking victims coerced into committing these fraudulent acts.
In 2025, reported losses from cryptocurrency investment fraud scams exceeded $5.8 billion, with many originating from large fraud compounds in Southeast Asia. Nigerian authorities also made significant arrests in connection with crypto-romance scams, highlighting the global reach and impact of such illicit activities.
Source: Independent
