US Seizes $225 Million In Cryptocurrency Tied To Global Investment Fraud Network

The U.S. Department of Justice has filed a civil forfeiture complaint seeking to claim more than $225 million in cryptocurrency allegedly connected to international investment fraud schemes.

The action marks the largest crypto seizure to date involving so-called "confidence scams," in which victims were led to believe they were making legitimate investments in digital assets.

According to the complaint, filed in the U.S. District Court for the District of Columbia, federal investigators from the FBI and the U.S. Secret Service used blockchain analytics to trace the movement of funds across a wide network of cryptocurrency addresses.

These addresses, the complaint says, were part of a laundering infrastructure that facilitated hundreds of thousands of transactions designed to obscure the origin and ownership of illicit proceeds.

The investigation identified losses affecting more than 400 individuals worldwide.

Victims were allegedly defrauded by operators posing as credible cryptocurrency investment platforms.

The complaint outlines how the scammers moved the stolen funds across numerous accounts to conceal their source.

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"This seizure of $225.3 million in funds linked to cryptocurrency investment scams marks the largest cryptocurrency seizure in U.S. Secret Service history," said Shawn Bradstreet, special agent in charge of the agency's San Francisco field office.

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Interim U.S. Attorney Jeanine Pirro said the effort reflects a broader commitment by federal authorities to disrupt fraudulent crypto operations and recover assets for affected individuals.

"Under my leadership, with the support of President Trump and Attorney General Bondi, the U.S. Attorney's office for the District of Columbia is taking a leading role in the fight against crypto-confidence scams," Pirro said.

The DOJ emphasized the prevalence of such fraud, referencing the FBI's 2024 Internet Crime Report, which cited more than $5.8 billion in losses from cryptocurrency-related investment scams in that year alone.

Matthew Galeotti, head of the DOJ's Criminal Division, said the agency intends to continue targeting illicit networks in the digital asset sector.

"This civil forfeiture complaint is the latest action taken by the department to protect the American public," he said.

The investigation also received support from the private sector.

The DOJ acknowledged cooperation from Tether USDT/USD, which provided assistance in identifying and securing the assets in question.

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