- DOJ seizes $225M in crypto, marking largest-ever U.S. Secret Service crypto bust
- Global scam exploited blockchain obfuscation to trick over 400 victims worldwide
- FBI and Secret Service used blockchain forensics and Tether aid to trace assets
The U.S. Department of Justice has initiated a civil forfeiture case to seize more than $225 million in digital assets connected to a large-scale, global cryptocurrency investment fraud network. The action represents the largest single cryptocurrency seizure in the history of the U.S. Secret Service.
The complaint, filed on June 18 in the U.S. District Court for the District of Columbia, targets funds that investigators traced through hundreds of thousands of blockchain transactions designed to obscure their illicit origins. The operation marks a significant move by the federal government to disrupt organized cybercrime rings and recover funds for defrauded investors.
Details of the Sophisticated Scheme
According to the Justice Department, the seized funds were part of a sophisticated, blockchain-based laundering operation. The criminal network allegedly used so-called “pig butchering” scams, where fraudsters build trust with victims online before convincing them to invest in fraudulent cryptocurrency platforms.
Victims were reportedly misled by false promises of high returns, unknowingly transferring their funds to scammers operating from overseas. Law enforcement officials stated that the network then moved the stolen funds through a complex maze of cryptocurrency addresses and accounts to conceal the source. The investigation has so far identified over 400 potential victims globally.
Related: North Korea-Linked Lazarus Group Targets BitMEX Employee with Phishing Scam
Interagency Cooperation Led to Seizure
The successful tracking and seizure of the assets was the result of a coordinated investigation led by the U.S. Secret Service and the Federal Bureau of Investigation (FBI), both operating out of their San Francisco Field Offices.
A critical component of the operation was the assistance of private sector partners. Stablecoin issuer Tether was acknowledged by the DOJ for its cooperation in freezing the $225.3 million in USDT, which was instrumental in securing the funds before they could be further dispersed.
“Today’s 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 Justice Department’s Criminal Division. U.S. Attorney for the District of Columbia, Jeanine Pirro, also emphasized her office’s commitment to restoring stolen funds to victims.
Related: FinCEN Proposes Ban on Huione Group for Crypto Scams, North Korea Links
Public Urged to Report Crypto Scams
This case highlights a growing trend in digital asset fraud. The FBI’s Internet Crime Complaint Center (IC3) reported that investment fraud accounted for $5.8 billion in cryptocurrency losses in 2024 alone.
The Department of Justice is urging anyone who believes they may have been a victim of such scams to file a report at the FBI’s Internet Crime Complaint Center. For those who believe their case may be related to this specific seizure, the DOJ has requested they include the code “BT06182025” in the narrative of their complaint.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
