The U.S. Department of Justice (DOJ) filed a civil forfeiture complaint to seize over $225.3 million in cryptocurrency. The funds are allegedly tied to a sprawling cryptocurrency investment fraud and money laundering operation that targeted hundreds of victims through blockchain-based schemes.

Filed in the U.S. District Court for the District of Columbia, the complaint claims that the seized digital assets are proceeds of so-called “cryptocurrency confidence scams.” These scams typically lure victims under the pretense of high-return investments in digital currencies. Instead, they are duped by fraudsters, often operating overseas, into transferring funds that are subsequently laundered through complex crypto networks.

According to law enforcement officials, blockchain analysis and forensic investigative techniques were key in tracking and identifying fraudulent transactions. Authorities revealed that the funds were dispersed through hundreds of thousands of microtransactions across various crypto addresses to obscure the origins and destinations of the stolen funds.

Largest Crypto Seizure in U.S. Secret Service History

“This civil forfeiture complaint is the latest action taken by the Department to protect the American public from fraudsters specializing in cryptocurrency-based scams, and it will not be the last,” said Matthew R. Galeotti, Head of the DOJ’s Criminal Division. “These schemes harm American victims, costing them billions of dollars yearly, undermining faith in the cryptocurrency ecosystem. Our investigators and prosecutors relentlessly pursue these scammers and their ill-gotten gains.”

U.S. Attorney Jeanine Pirro for the District of Columbia emphasized the aggressive posture her office is taking against this type of crime: “Under my leadership, with the support of President Trump and Attorney General Bondi, the U.S. Attorney’s Office is taking a leading role in the fight against crypto-confidence scams. We are working with law enforcement nationwide to seize and forfeit stolen funds from foreign criminals, aiming to make victims whole.”

The scale of this forfeiture makes it the largest cryptocurrency seizure in the U.S. Secret Service’s history. Special Agent in Charge Shawn Bradstreet of the USSS San Francisco Field Office remarked, “These scams prey on trust, often resulting in extreme financial hardship for the victims. The USSS, FBI, and our private partners worked diligently to trace these illicit transactions, identify victims, and seize these funds so they can eventually be returned to their rightful owners.”

FBI and DOJ Take Aim at Cryptocurrency Investment Fraud

The FBI, which played a central role in the investigation, has voiced concern over the rising threat posed by such schemes. “The forfeiture of these illicit funds is a powerful tool in the FBI’s toolbox,” said Assistant Director Jose A. Perez of the FBI Criminal Division. “We will not stand by while online criminals deceive Americans into believing they are making legitimate investments.”

According to the FBI’s 2024 Internet Crime Report, cryptocurrency investment fraud was responsible for more than $5.8 billion in reported losses last year. The DOJ’s current complaint references losses involving over 400 victims, most of whom were deceived into transferring funds they believed would yield crypto investment returns. Instead, they became entangled in an elaborate international money laundering network.

The DOJ credited Tether, a major cryptocurrency company, for its proactive cooperation in tracking and securing illicit assets. The seized assets are being held pending judicial approval of the forfeiture.

DOJ Encourages Victims to Come Forward

Trial Attorneys Stefanie Schwartz and Ethan Cantor from the DOJ’s Computer Crime & Intellectual Property Section (CCIPS), alongside Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr., oversee the case. The U.S. Secret Service and FBI field offices in San Francisco led the investigation.

The DOJ urges anyone who believes they have fallen victim to a cryptocurrency investment fraud scheme or any related money laundering activity to file a report through the FBI’s Internet Crime Complaint Center at www.ic3.gov. Victims of the scams mentioned in this case should include the code “BT06182025” in their complaint narratives. Those who have filed previously are encouraged to reference any prior complaint in their submission.

References:

• https://www.justice.gov/opa/pr/united-states-files-civil-forfeiture-complaint-against-225m-funds-involved-cryptocurrency
• https://www.ic3.gov/

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