Washington, D.C. – In a groundbreaking move against cryptocurrency investment fraud, the U.S. Department of Justice (DOJ) revealed on Wednesday that it has filed a civil forfeiture complaint aimed at seizing over $225 million in cryptocurrency. This action represents one of the largest of its kind in the history of the United States.
The complaint, lodged in the U.S. District Court for the District of Columbia, seeks to confiscate funds that are purportedly linked to extensive cryptocurrency investment fraud and money laundering operations, commonly known as “crypto confidence scams.” DOJ officials stated that investigators employed blockchain analysis and sophisticated tracing technologies to expose a vast network that laundered the proceeds from these scams through hundreds of thousands of crypto transactions.
“These schemes harm American victims, costing them billions of dollars every year, and undermine faith in the cryptocurrency ecosystem,” said Matthew R. Galeotti, Head of the DOJ’s Criminal Division. “This action is part of our broader effort to relentlessly pursue scammers and recover stolen funds.”
The seized assets were reportedly channeled through an intricate money laundering scheme that utilized various crypto addresses to hide the origin of the illegal funds. Officials suspect that over 400 individuals fell victim to deceptive crypto investments.
As stated in the FBI’s 2024 Internet Crime Report, fraud related to cryptocurrency investments led to more than $5.8 billion in reported losses just last year—a statistic that highlights the swift growth and perilous extent of these digital scams.
Jeanine Pirro, U.S. Attorney for the District of Columbia, emphasized the aggressive stance her office is taking on these crimes: “With the support of President Trump and Attorney General Bondi, we are leading the charge against crypto-confidence scams. Our mission is clear—seize stolen funds from foreign criminals and return them to American victims.”
The joint investigation was led by the FBI and the U.S. Secret Service (USSS), with key support from private sector partners. The $225.3 million seizure is the largest cryptocurrency seizure in USSS history, according to Special Agent in Charge Shawn Bradstreet of the agency’s San Francisco Field Office.
“These scams prey on trust, often resulting in extreme financial hardship for the victims,” Bradstreet said. “Our teams worked tirelessly to trace the flow of funds and seize them so they can eventually be returned to their rightful owners.”
The Department of Justice recognized Tether, a leading stablecoin provider, for its assistance during the investigation.
The FBI is calling on anyone who suspects they might be a victim of cryptocurrency fraud to submit a report at www.ic3.gov. Those involved in this case should mention the code “BT06182025” in their complaint descriptions and refer to any earlier reports if relevant.
