U.S. DOJ Seeks Forfeiture of Over $225 Million in Crypto Linked to Investment Fraud Network

The U.S. Department of Justice (DOJ) has filed a civil forfeiture complaint against more than $225.3 million in cryptocurrency allegedly linked to an investment fraud network that involved “pig butchering” tactics, commonly known as “cryptocurrency confidence scams”.

According to the complaint filed in the U.S. District Court for the District of Columbia, law enforcement traced the funds to a sophisticated blockchain-based money laundering scheme that processed hundreds of thousands of transactions in an attempt to conceal the source of illicit proceeds.

Special Agent in Charge Shawn Bradstreet of the U.S. Secret Service (USSS) San Francisco Field Office stated that the seizure marks the largest cryptocurrency seizure in USSS history tied to investment fraud.

Investigators found that over 400 suspected victims were lured into transferring funds to the scheme after being deceived by false promises of returns from legitimate cryptocurrency investments.

The FBI’s Internet Crime Complaint Center reported that cryptocurrency investment scams accounted for over $5.8 billion in reported losses in 2024 alone.

Authorities have initiated forfeiture proceedings, aiming to return the seized funds to defrauded individuals.

The FBI has previously seized more than $8 million in cryptocurrency linked to a pig-butchering investment fraud, a rare instance of crypto asset recovery.