U.S. Seizes Over $225 Million in Crypto Linked to Fraud Schemes

U.S. authorities have seized more than $225 million in cryptocurrency allegedly tied to fraudulent investment schemes, as announced by the Department of Justice (DOJ) on Wednesday. A civil forfeiture action has been filed in the District of Columbia targeting these crypto assets, which are purportedly linked to large-scale fraud and money laundering.

The DOJ stated that the funds were laundered through a network of shell companies and connected to scams that defrauded hundreds of victims. The complaint indicates that over 400 individuals are believed to have lost millions through fake crypto investment platforms. The department intends to return the seized funds to the victims, though a timeline for restitution was not provided.

Interim U.S. Attorney for the District of Columbia Jeanine Pirro commented, "This case is about justice for victims who were systematically drained of their savings." Stablecoin issuer Tether confirmed its role in the investigation, stating in a blog post that the seized cryptocurrency was linked to "pig butchering" scams—a type of online fraud where criminals build trust with victims to solicit increasingly larger sums of money under the guise of fake investment opportunities.

The FBI reported that cryptocurrency investment fraud resulted in over $5.8 billion in losses in 2024. Overall, Americans lost more than $9.3 billion to scams involving digital assets last year, according to data from the agency's Internet Crime Complaint Center. On the same day as the DOJ's announcement, New York officials reported seizing $140,000 and freezing an additional $300,000 in connection with a similar investment scheme that used fraudulent social media advertisements, affecting over 300 victims with losses exceeding $1 million.

During a press briefing, Pirro declined to comment on whether the DOJ would extend similar scrutiny to President Donald Trump's recent crypto-related ventures, instead emphasizing the department's priority of protecting individuals from losing their savings to scams, citing the recently passed GENIUS Act focused on stablecoin oversight​.