Record seizure linked to large-scale crypto scam and laundering network
The US Department of Justice (DOJ) has filed a civil forfeiture complaint against more than $225 million in cryptocurrency, alleging the funds are connected to a widespread cryptocurrency investment fraud scheme.
The complaint, filed in the US District Court for the District of Columbia, states the cryptocurrency was laundered through a complex network of blockchain transactions. The network allegedly dispersed stolen funds across a large number of digital wallets in an attempt to conceal their origin.
The operation included hundreds of thousands of transactions.
According to the DOJ, the addresses holding the funds were part of a “sophisticated blockchain-based money laundering network.” The funds are believed to be linked to so-called “cryptocurrency confidence scams”, in which victims are deceived into investing in fraudulent digital asset platforms.
More than 400 suspected victims identified
The investigation has so far identified over 400 individuals believed to have lost money in the alleged scheme. In many cases, victims were tricked into believing they were making legitimate investments through online communications and fake trading platforms.
According to the Federal Bureau of Investigation (FBI), cryptocurrency investment scams caused more than $5.8 billion in reported losses in 2024 alone, based on its Internet Crime Complaint Center’s annual report.
The case was led by the FBI San Francisco Field Office and the US Secret Service (USSS) San Francisco Field Office. Investigators were assisted by blockchain analysis tools and cooperation from Tether, the issuer of a widely used stablecoin. The DOJ acknowledged Tether for its “proactive assistance” in tracing the illicit funds.
Largest crypto seizure in Secret Service history
Special Agent in Charge Shawn Bradstreet of the USSS San Francisco Field Office confirmed the seizure is the largest in the agency’s history involving digital assets.
“These scams prey on trust, often resulting in extreme financial hardship for the victims,” said Bradstreet in the DOJ press release. He noted that efforts are ongoing to identify victims and recover additional assets.
Assistant Director Jose A. Perez of the FBI Criminal Division added that the Bureau would continue working with affected individuals and public agencies to combat this type of fraud.
US intensifies focus on crypto fraud enforcement
The civil forfeiture complaint is part of a broader effort by the US government to combat fraud in the digital asset space.
Matthew R. Galeotti, Head of the DOJ Criminal Division, said the Department is committed to pursuing both perpetrators and their assets.
“These schemes harm American victims, costing them billions of dollars every year, and undermine faith in the cryptocurrency ecosystem,” said Galeotti.
Jeanine Pirro, US Attorney for the District of Columbia, said her office is leading efforts to recover stolen funds and return them to victims, with backing from President Donald Trump and Attorney General Pam Bondi.
The legal team handling the case includes Trial Attorneys Stefanie Schwartz and Ethan Cantor of the DOJ’s Computer Crime and Intellectual Property Section, along with Assistant US Attorneys Kevin Rosenberg and Rick Blaylock Jr. for the District of Columbia.
The DOJ stated that the investigation remains ongoing.
It’s a global issue
Several countries have carried out major cryptocurrency seizures linked to fraud and money laundering in recent years, reflecting a broader global effort to disrupt digital financial crime. While the US continues to lead in volume and frequency of action, law enforcement agencies in the UK, Singapore and Australia have also undertaken record-breaking operations.
In the UK, the Metropolitan Police announced in July 2021 the seizure of £180 million (approximately $250 million at the time) in cryptocurrency as part of an ongoing investigation into international money laundering. It followed an earlier seizure of £114 million, with both linked to organised crime groups. The Metropolitan Police described it as the largest cryptocurrency seizure in UK history.
In Singapore, authorities announced in August 2023 that they had seized over $735 million Singapore dollars (around $540 million USD) in assets, including a “significant amount” of cryptocurrency, during a crackdown on a foreign-led money laundering syndicate.
The operation involved multiple agencies and was described as one of the country’s largest anti-money laundering efforts to date.
In Australia, the Australian Federal Police (AFP) revealed in September 2022 it had seized digital assets linked to criminal proceeds as part of Operation Ironside, a long-running investigation targeting organised crime groups using encrypted communications.
While the total amount of cryptocurrency seized was not fully disclosed, the AFP confirmed that one seizure alone involved assets worth over $600,000 AUD. The force has since established a national crypto asset tracing team.
